Any investor that has held on to Bitcoin since 2017 is up over 175% over the past five years. There are very few assets that can offer such stunning returns, which is just one of the reasons that so many people are starting to invest in cryptocurrency.
So, why invest in cryptocurrency in 2022? There are still plenty of benefits to investing in crypto, as the article below explains.
Continue reading this piece to learn about the five reasons why you might want to consider investing in different types of cryptocurrency. ,
1. To Diversify Your Portfolio
Most experienced investors will tell you that it’s important to diversify your portfolio. This is a good rule because it’s unlikely that all asset classes will drop in value at the same time.
Stocks and bonds rarely go down at the same time, for example. Crypto investments give you another asset class to use in your portfolio diversification strategy.
2. To Be a Part of New Technology
Bitcoin was officially launched in 2009 but didn’t really gain traction among investors until 2016. That means the entire cryptocurrency ecosystem is only about 13 years old.
By comparison, the internet was invented in 1983. 13 years later, it was 1996, and many people still weren’t using the internet. Buying cryptocurrency gives you exposure to a relatively new technology and asset class.
3. To Experience the Ever Expanding Uses for Cryptocurrency
Some people invest in cryptocurrency and wait for the assets to appreciate in value. Others buy cryptocurrency so they can purchase NFTs or other products in the cryptocurrency universe.
As the uses for cryptocurrency expand, there are more and more reasons to own different forms of crypto.
4. To Try to Take Advantage of Major Volatility
Some people like to invest in stable assets that don’t go up and down in price very often. While this is a relatively safe way to invest, it’s also unlikely to result in big returns.
Cryptocurrency is much more volatile than other asset classes, meaning it can go up and down in price by double-digit percentage points in a single day. If you time your investment right, you can get a big return on investment by taking advantage of this volatility.
You can check the Loopring CAD price over time to see examples of this volatility.
5. Because It’s Easy to Liquidate
Stocks are less liquid than cryptocurrency investments, meaning they’re not as easy to turn into cash. If you invest in the stock market, it can take multiple days to withdraw your cash after you sell the investment.
If you choose to invest in real estate, art, or collectibles, you’re investing in even more illiquid assets. Cryptocurrency is different. You can usually sell your investment and get cash within a few hours.
Why Invest in Cryptocurrency in 2022
Many people have been asking themselves, “Why invest in cryptocurrency these days?” Now that you’ve read the article above, you understand some of the major benefits of investing in this new asset class.
If you’re interested in learning more about cryptocurrency and other forms of investing, be sure to continue reading all the other articles going live on this website each week.