Is cryptocurrency a good investment? Why invest in Bitcoin? What are the advantages of virtual assets and is it smart to trade crypto in 2021?
Although cryptocurrency emerged only a decade ago, it has proven to be more than enough time to revolutionise the financial market as we know it. Traders were suddenly introduced to a refreshing and independent alternative to the outdated banking standard. Their focus shifted to the soaring cryptocurrency market, which has doubled in value within just one year and has been pushed to over $2 trillion at the beginning of April.
Cryptocurrency is certainly providing investors with a fair share of excitement, luring them with the comparatively feasible promise of easy riches. At the same time, crypto leads inexperienced everymen into infamously calamitous losses. Yet, the ever-growing demand for Bitcoin or even the recent outburst of interest in Dogecoin seems to support the idea of virtual currency nesting its way into human consciousness, as the favoured model of future money. It is not difficult to list at least five appreciable reasons to invest in cryptocurrencies, so read on to learn: why is crypto valuable?
1. Possibility of High Returns
With incredible volatility comes incredible profitability. Although Bitcoin has famously ballooned tenfold in just one year ($5K at the beginning of March 2020 and over $55K today), growing to the virtual celebrity ranks, it is clear that other cryptocurrencies have undergone a similar journey. The price of Ethereum has increased from $100 to just under $2000 in the same period and Dogecoin’s value has leapt over 1000% just in February 2021 alone. Such vigorous climbing provides not only a great punting utility but also may reward traders with incredible returns. Bitcoin, as well as Ethereum and Dogecoin, hold enough power to conceivably facilitate amassing an overnight fortune to their holders. As the money market tends to retrace itself, in line with the Elliott Wave fractal correction pattern, it is wise to keep in mind that the risk of losing money is equally high if investing inattentively.
2. Alternative to Fiat
Even a cursory analysis of the latest history of crypto indicates that this is just the beginning of the market-altering bullish tendencies. It seems self-evident that crypto will continue to thrive over the coming years. The recent economic climate and subsequent market demand inject cryptocurrency with noteworthy advantages. Crypto’s magnetic appeal easily wins investors over, offering them an alternative to the traditional market solutions. Evolving independently from the central banking system, cryptocurrency seems to prosper in the current landscape of uncertainty, unrivalled by government-issued paper.
3. Control over your Money
Although both fiat and cryptocurrencies are bereft of intrinsic value, the very factor of crypto’s decentralisation still caters more to independent investors, trying to escape out of the faltering banking system. In the current economy, fiat seems to be wuthering alongside the economic house of cards it’s built upon.
With Bitcoin, Ripple, Ethereum and Dogecoin, the holder’s money belongs solely to their holder. There is no financial institution to rely on, that would limit or close access to the invested assets. There is no bank involved in the transactions, no associated fees and until recently they weren’t even taxed! Virtual currency belongs rightfully to an investor and is traceable on the blockchain, which ultimately means that there is a digital name engraved on every single coin a holder owns.
In fact, the decentralisation of finances is rapidly formulating itself as the basis for a newly-emerging economical architecture, and crypto is designed to support it.
4. High Liquidity
Another amazing benefit of virtual assets is their liquidity and subsequently – high spendability. Virtual currencies are a technological marvel, designed with efficiency in mind. A solution enabling straightforward organisation on trading platforms to easily support algorithm-based trading tactics, such as automated buying and selling at a specified price. Crypto can be purchased and spent effortlessly at any given moment, at a price close to its market rate. A dynamic asset, offering simplicity and allowing traders to react instantly, requiring neither substantial resources nor patience from traders.
5. Optimistic Prognosis
With archaic fiat slowly losing its credibility, the astonishingly contemporaneous crypto appears to be a prevailing solution for future generations. Digital currencies bring qualities that emerged outside the banking system, as an independent alternative, unburdened by governmental affairs. Crypto is here to stay, crystallising its reputation a leap after leap. Although its price fluctuates rapidly and could potentially be an unnerving experience to track its movement, the majority of the long-term forecasts are extremely favourable. Investing in crypto and holding it for a few years is speculated to be a recipe for a generous profit.
In response to that, the Kinesis Exchange ensures exceptionally rewarding conditions on the market, when compared to other exchange platforms, offering a fixed 0.22% execution fee and tight spreads on all cryptocurrency pairs.
The Kinesis Solution
With Kinesis, it is possible to seamlessly trade between precious metals and crypto pairs and keep all transactions in one place, whether the intention is to instantly spend, utilise the latest bull run, or invest for years to come. Additionally, every transaction within the Kinesis system rewards its users with a recurring monthly yield – an initiative exclusive to Kinesis.
Perhaps the most considerable argument against investing in crypto is the lack of the intrinsic value providing a stable foundation. Virtual currency draws its volatile power from the market demand and is being conducted solely by its own popularity, as a consequence. An example of this is the correlation between Elon Musk’s frivolous tweets and corresponding surges in Bitcoin and Dogecoin market value.
An ingenious solution can be brought by backing digital coins with historically stable assets, such as gold or silver bullion. This idea has laid the foundation for the Kinesis currencies, which merge the best properties of cryptocurrency with the stable value of the everlastingly appreciated precious metals. Kinesis digitalised gold (KAU) and digitalised silver (KAG) are designed to minimise volatility and bring stability for the Kinesis Monetary System participants.
This publication is for informational purposes only and is not intended to be a solicitation, offering or recommendation of any security, commodity, derivative, investment management service or advisory service and is not commodity trading advice. This publication does not intend to provide investment, tax or legal advice on either a general or specific basis.