You’ve probably heard of cryptocurrency traders who made huge profits from trading different cryptocurrencies. For instance, early Bitcoin investors saw the value of Bitcoin increase five thousand times from its initial value in 2010, and hence they were able to reap massive profits from selling them. Aside from huge profits, there are other benefits that cryptocurrencies offer to people hence encouraging them to invest. Here are five major reasons why people are still investing in cryptocurrencies in 2018.
- Need to do away with paper currency
While coins and paper notes are still an integral means of exchange all over the world, research shows that paper currency has many drawbacks as compared to digital currency. Governments are therefore encouraging a cashless economy where money is transferred through digital means. Cryptocurrencies especially Bitcoin have been embraced as one of the most convenient digital means of payment because it eliminates counterfeiting while still offering a fast, cheap and global means of exchange. Today, many outlets all over the world ranging from retail stores to shopping malls and even banks accept payments in the form of cryptocurrencies.
- Decentralization and lack of third parties
Blockchain technology, which is the system behind many cryptocurrencies, is decentralized in nature hence eliminated the need for middlemen in facilitating transactions. Furthermore, all transaction records are stored in a public ledger which cannot be altered or manipulated. These promotes transparency while also safeguarding the system from cyber-attacks in the form of hacking which is the case in most centralized systems.
Investors are therefore able to trade in a secure, trustworthy and immutable trading ecosystem in various trading platforms that use blockchain technology. More recently, the advanced software has emerged in the industry such as Fintech LTD which provides an automated trading system that helps investors by placing profitable trades for them 24/7.
- Emerging regulations
Due to the anonymity associated with the use of cryptocurrencies, most digital currencies were previously regarded associated criminal transactions. However, this is bound to change in 2018 due to the emerging regulations, policies, and restrictions with regard to cryptocurrencies and ICOs. Regulations improve the security and legitimacy of these currencies which in turn encourages investors to pump their cash into them.
- Appreciating value
Cryptocurrencies are still lucrative investment options due to their ever-increasing value. This increase in value is mainly brought about by popularity and increased demand. Forecasts into the future show that the value of cryptocurrencies is expected to rise significantly for the next decade making them a viable option to invest in.
- Increase in number of legitimate ICOs
Numerous Initial Coin Offerings emerge on a daily basis each with different promises to their potential investors. Although not all ICOs are successful, the ones that succeed usually bring a remarkable return on investment for their token holders. Due to the possibility of high returns, more and more people have been drawn to invest in them with the hopes of amassing great wealth in the long run.
In summary, Cryptocurrencies are here to stay and are most likely going to benefit the most patient and consistent investors who are willing to take the risk.
