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On the other hand, this has made cryptos like Bitcoin to be very expensive, discouraging many who intend to invest - on the thought that "they missed the ship." This set of people may either take it that it's too late to invest or may probably be waiting for a price crash.
Are you in this category or are you considering adding more cryptocurrency to your portfolio? Crypto is still extremely early, and in the article, we will explain why you can still invest now. The blockchain industry is here to stay and there is increased adoption of cryptos by various institutions etc. This article explains these and other reasons in detail.
Although crypto prices are very volatile, you can still make lots of money by investing and holding them for a long term. This implies that investing in crypto may be risky but also potentially profitable when you consider the long-term value of the industry. Below are a few reasons why you should invest in crypto now.
Blockchain Has Come To Stay: Blockchain is the technology behind digital currencies, and it's currently being adapted into various industries for different use cases. These real-world applications or projects make the blockchain industry gain more ground and popularity. They include Personal identity security, Anti-money laundering tracking system, secure sharing of medical data, supply chain, and logistics monitoring, etc.
More interestingly, blockchain networks are the bedrock of the fast-growing decentralized applications and non-fungible token market, all of which are contributing immensely to the growth of the crypto industry. So, as industry experts continue to build and improve their blockchain solutions for dApps or other projects, the overall cryptocurrency market continues to grow.
Increasing Adoption of Cryptos: Crypto is constantly being accepted by various institutions as a payment medium. Despite the inherent risk, many industries and some countries are now gaining direct crypto exposure as well. Some of these companies include MicroStrategy and Tesla which bought bitcoin for about $1.5 billion early this year. Payment giant PayPal also recently joined the space, making it easier for investors to buy and sell cryptos on their platform.
El Salvador has also become the first country to accept Bitcoin as a legal tender. However, this wide acceptance is consistently becoming stronger. It’s a sign that the crypto industry is maturing and makes buying or investing in crypto more lucrative.
Price Volatility: Many people get discouraged by the high volatility of cryptos. But, this is an opportunity for any real investors and traders to make more money from cryptocurrency. How does it feel like to buy low and sell high? This logic will make a lot of sense to people who invested in crypto during its early stage in 2017.
They bought bitcoin at a very low rate of about $920, but as of the time of writing, bitcoin is worth $58,511.
However, from 2017 that bitcoin started gaining popularity till date, the price has risen and fallen severally. It has now gained a more stable form; hence, investing now is safer. The risk is minimal as the prices cannot drop to a very low rate as they did a few years ago.
Moreover, there are varieties of cryptos to buy in case you still consider the price of the most popular ones like Bitcoin and Ethereum to be high.
More Available Information and Awareness. Many people as of 2017 and even before then hardly know much about crypto. It was difficult to get any viable information on a lot of crypto projects. But presently, things have changed for the better. There is now crypto-related information and news on different social media sites and other websites, including Reddit.
They create more awareness about crypto, educating investors and intending investors on the best crypto to invest in, how, and why. Again, crypto scams are now exposed more quickly via these means than before based on the experience previously gained by the industry. Hence, it's much safer and easier to invest in crypto now so far, you explore the right information made available to you.
Irrespective of the recent crypto price boom, the best time for you to start investing is now. The crypto industry is growing per day, and the price volatility could be an opportunity to explore. However, Bitcoin, Ethereum, and other altcoins with large market caps are relatively safer to start with. They are more popular and have a higher contribution to the growth of the crypto industry.
Moreover, crypto analysts expect the value of crypto to grow by ten times its present value in the next five years. This implies that the decision to invest now could be among your best financial moves. But it's also worth noting that cryptocurrencies are very volatile, and so you should only invest the amount you can afford to lose in the worst scenario.