Blockchain technology and cryptocurrencies became very popular in recent years, especially with the rise of Bitcoin, which has a value of over 20,000$ in one moment. Today, the market is full of various cryptocurrencies, which creates a wide range of possibilities for a good investment. Also, many countries have adopted various measures that allow cryptocurrencies to be freely traded on the market and used as a regular method of payment. There are over 7,000 ATMs all across the world where you can exchange crypto for any other currency.
Although the basic use of cryptocurrencies is to be a method of payment, many people see potential in investing in them for profit, especially because they are a subject of frequent variation in value. However, it requires a proper analysis of the market to know in which one should be smart to invest. One of the nest platforms where you can check the situation of the crypto market is CoinCodex.com, where you can find all important data related to cryptocurrencies, their value, and potential.
There are many advantages, but also risks when it comes to investing in crypto and digital currency. Many of them have a huge potential, and by some projections, we can expect a big rise of value for many of them. It is necessary to obtain proper research of the market before you choose the particular digital currency. Here are the benefits of investing in cryptocurrencies and digital currencies.
When you are transferring money from your bank account, you will most certainly have to pay some fee, which can be higher than 5 percent of the transaction in some cases. On the other side, when you choose to pay something or transfer money with your e-wallet, there might be only some minor fee or no fee at all. The biggest advantage of this is when you are transferring money to or from another country where the bank will usually charge you 50$ for a transaction of 1000$. Cryptocurrency fees for transactions are much lower, and most of the exchanges are offering you only to pay a small fixed fee.
Digital Currencies are an Easy Investment
If you are planning to invest in digital currencies for a profit and trade, the method is similar like with forex, but much simpler, since the market of shares can be too complicated for beginners. On the other side, you only need to research the crypto market and decide what particular cryptocurrency has the potential to get a bigger value over time. The process of buying is quite simple, and you only need an e-wallet. Also, you can decide various types of digital currencies to store in the same wallet.
Improved Transparency and Flexibility
The use of blockchain technology provides the transaction to be transparent and visible for everyone. Your data are hidden, but the address of the wallet and amount of money can be visible to anyone. This way, you can easily check if the amount of crypto that you sent is being relocated to the right address. According to that, trading with cryptocurrencies is also safe.
What makes trading with digital currencies profitable and interesting for many, is high flexibility, since you can choose many different types of them. When you decide to invest in more than one crypto, the chance for profit will be much bigger. The most popular cryptocurrencies are Bitcoin, Ethereum, Litecoin, and there are many others. If you are a beginner, and not sure which one to choose, maybe it would be best to invest less money in popular ones, but also to search for some new types that have good potential.
Cryptocurrencies that are relatively new to the market are generally much cheaper.
There are Advantages for Both Long-Term and Short-Term Investments
While it is always better to plan a long-term investment, there is a chance to get a profit in a short period in some situations. Most of the cryptocurrencies are under constant fluctuation on the market, and with a good analysis, you can manage to buy some at the right moment, and sell it for a bigger price in a short period.
CoinCodex and similar platforms are necessary for this process because some currencies could change drastically within one day. It is crucial to predict the potential risk of fall in the value of some digital asset, and buy it at the right time. Also, for long-term investments, you should follow the research and advice from experts who can successfully analyze the market and predict if some currencies will go down or become much more expensive.
More and more people are interested in blockchain technology and digital currencies, and many countries are planning to implement them in their financial sector to become the main method of payment. There is great demand and interest in cryptocurrencies on the market. According to some experts, we can expect a great rise in the value of some popular crypto like Ethereum and Bitcoin.
On the other side, there are hundreds of new currencies, and you should research about which one of them has good potential, and invest in that one. For example, Cardano is worth less than one dollar, but many people suggest that this one has the potential to be much more valuable in near future, which makes it a good one to invest in for long-term investment. Besides Cardano, there are also QuantStamp, IOTA, Ardor, Nem, Ravencoin, Ontology, and many others which all cost less than 1$, but have a great potential to be much more valuable.
The Bottom Line
Cryptocurrencies are represented as money of the future, and some countries are already planning to implement the cashless system, which will make digital assets even more popular. However, the crucial thing about investing in crypto is choosing a smaller amount in various types of currencies at the beginning. People who bought Bitcoin before 2015 were paying it less than 1000$ while that year it was worth over 20,000$. Currently, it is worth less than 10,000$, but it could easily become much more expensive in the future. Also, you should invest in some cheaper currencies with good potential for a bigger chance to have a profit.