Cryptocurrency is not a new term to anyone. There is a heated debate on the future of cryptocurrency. But cryptos have gained immense popularity in the last decade, especially amongst young investors. Why is cryptocurrency so popular?
The fondness for cryptos has forced the government to plan the regulation of these currencies. Many countries have been coming forward with their plan to regulate the payments.
Cryptos adopt a decentralized finance model and blockchain technology allowing secured transactions. All crypto transactions are saved in the individual ledger as there is no history pointing to any crypto hacking incident.
Why is cryptocurrency so popular?
Cryptocurrencies are the wave of the future. Many well-known figures have come out in favor of cryptocurrencies. Tesla, for example, just announced that it had enabled an online shopping facility on its website. Buyers may use Ethereum to pick their favorite merchandise. Tesla had earlier supported Bitcoins as well. But this decision was withdrawn considering environmental hazards involved in mining.
Crypto investments are a safe place to grow their investment. Crypto investments have provided investors with a higher rate of return in the Bitcoin Era. Every crypto has its mining process.
Below are the key highlights of cryptos –
- Cryptocurrency is a breakthrough innovation in terms of cash transactions.
- Transactions are secure and private as cryptos use blockchain technology.
- Mining is the process of validating transactions using cryptos. There is a complex algorithm deployed to track every transaction.
Let us understand five important reasons why crypto is popular amongst investors.
Low fees: Cryptos carry low transaction fees. There is a huge volume of fees tied to traditional transactions. This is the primary reason why cryptos have been popular in the world.
Investors these days use bitcoins and cryptos to undertake transactions online. Also, it is easy to buy digital currencies by simply logging into an exchange. This is another advantage of using cryptos and a safe working model.
You can add these cryptos to your wallet and use them for undertaking transactions.
No government regulation to cryptos: There is no regulation or government intervention on any transactions undertaken. This means irrespective of inflation and deflation, the cost of cryptos remains stable.
There is a guarantee that crypto transactions are any time-safe investment opportunity. This means there is protection to your investment. This protection and investment opportunity are increasing year on year.
Potential for profit and returns: There is potential for increased profits by
investing in cryptos. Investor studies the market trends and then picks the best coin with available funds in your hand.
This way, you can buy and hold cryptos in your wallet — the cost of these cryptos increases as per market fluctuation. If you look at the trend of bitcoin, investors have reaped benefits in a million.
Other cryptos like Ethereum, Polkadot, Polygon and Shiba Inu, etc. have also followed this trend. While the market fluctuates, there is a sure return on investment.
Cryptocurrency is easy to use: Thanks to online sites and their welcoming approach. Cryptos have now been accepted for payment purposes by leading online companies.
As payment using cryptos becomes common, there will be an increasing demand. Specific online sites also have crypto debit card payment options. This payment is built-in into their payment links.
This will also ensure a hike in prices and potential benefits to investors. Another factor is that there is much information on the web about bitcoins. It is important to understand these benefits before investing.
Security of transactions: Cyber security is important these days. Bitcoin and other cryptos provide this guarantee to crypto investors. Every transaction undertaken using crypto is secure. There is no opportunity to trace your transactions. Compared to other traditional payment modes, cryptos payments are secure.
Considering the advances in technology and investments in research & development, it is not possible to ignore the growth of cryptos. There will be scrutiny developed by the government, central banks, and other regulatory authorities. Regulations will be put in place to track crypto transactions. Another important factor of cryptos is their volatility. Cryptos are highly unpredictable, and market conditions keep impacting their performance daily.