The world has entered an economic crisis as it is still recovering from the pandemic. As a result, many are searching for a viable alternative source of income and seeking refuge in cryptocurrency trading.

Crypto has given hope to those losing their jobs during the pandemic. In addition, as an alternative source of income, many made substantial profits during the lockdown.

When conventional markets were in crisis when people were being laid off, many ventured and tried trading cryptocurrency to find alternate sources of income. Even those with little or no knowledge of cryptocurrency tried their luck in the crypto market.

People saw the potential and the advantages of trading and owning a cryptocurrency. Although many fell victim to a cryptocurrency-related scam, it did not deter them from learning from their mistakes and starting fresh with knowledge of spotting a potential crypto scam. Thus, as the benefits outweigh the risk, many are ready to dive into cryptocurrency. 

So what makes cryptocurrency trading appealing among the masses?

There are many benefits involved, and we share a few that attract many towards adopting cryptocurrency and its trading.

Security.

Cryptocurrencies are based on blockchain technology, any transaction:- buying or selling, is recorded in a block. Unlike fiat currencies regulated and monitored by a central bank, cryptocurrencies are regulated and monitored by a decentralized, Peer-to-Peer network. 

You can manipulate data on the centralized system as limited sources are involved. However, if one wishes to manipulate a single data on a blockchain, it would take thousands of years since the system is decentralized.

Every time a transaction is carried out, the data is verified and approved by several sources and is available throughout the network, making manipulation next to impossible.

Transactions made easy.

Opening up a crypto account is very easy and can be opened without needing to leave your home. Several crypto exchanges are available online. You can open the account through a mobile, personal computer, or even a tab.

A few cryptos like Bitcoin, Ethereum, Litecoin, and so forth can be bought through an ATM directly. After purchasing cryptos of your choice, you can send them to your relatives or friends or even to your own crypto wallet.

You can also send these cryptos from one part of the world to another instantaneously. For example, we have recently seen during the Russian invasion; many supporting Ukraine send cryptos to President Zelensky as funds to help his country.

Less Transaction Cost.

Compared to banks, transferring transactions in cryptos require less transaction cost. Transaction in cryptos is fast and cheap compared to fiat currency transactions in a bank. Although wire transfer requires roughly three to five days to settle a transaction, they also require significant transaction fees.

Although few consider cryptocurrency from an investment point of view, they view it like any normal stock whose value appreciates over time; many treat it differently.

Several institutes are accepting crypto as a mode of payment. Many states in the U.S. are encouraging home buyers to buy homes using cryptos as collateral. Such customers can also reap the tax benefits in these states.

Many commercial businesses offer their clients to pay charges for their goods and services through cryptocurrencies.

Many who tour the world use cryptos since they are easy to store and use. Several countries are accepting cryptos besides fiat currencies.

Good returns. 

Compared to traditional stocks, crypto returns are substantial. The reason is that cryptocurrencies are highly volatile and tend to change the trend from bearish to bullish and back to bearish within seconds. Thus, such volatility is favored by traders who can make quick money in a short period.

It has been observed that stock market indexes like S&P 500 give an annual growth of 8%, while cryptocurrencies give roughly 60% returns in the same period.

Traders’ choice.

Since Cryptocurrency trading assures a good return due to the inherent volatility, many traditional stock traders are also adopting cryptocurrencies. 

The crypto market is open 24 by seven; thus, as the market does not sleep, anyone can trade in cryptos regardless of the time zone. Many traders trade cryptos according to their style. 

However, one thing remains constant: these traders will trade cryptos for both short and long term. Therefore they end up multiplying their wealth.

Crypto transactions are private.

One reason people are flocking and adopting cryptos is that holding and transactions of cryptocurrency are private.

Although there is transparency while trading in cryptos, one cannot determine how many cryptos are available in your account. Thus, even the government cannot ‘eye’ your holding and levy taxes for your holding. As a result, it is much more secure and private than fiat currencies. 

Since the entire show revolves around blockchain transactions, each transaction can be viewed; thus, there is transparency when it comes to transactions but not on your holding of cryptocurrencies.

Another opportunity to diversify your portfolio.

Since cryptocurrencies are another part of financial assets, they allow you to create another portfolio besides your traditional stock market portfolios. Like any other stocks in your portfolio, you can watch and grow your crypto portfolio. 

Wall Street is allowing derivative products like Bitcoin Options Trading and other crypto derivatives. Thus even the government has acknowledged the use of cryptos.

Using cryptos to hedge inflations.

We are in financial turmoil; inflation is hitting badly, and bringing bread to the table is difficult. 

Few South American countries like Mexico and El Salvador accept, trade, and hold cryptos to hedge inflation.

In the U.S., many are following the same suit; they ask increasing their crypto holdings as several have lost their jobs and are treating cryptocurrencies as an alternative source of income.

Banks are not needed.

People who lack access to, or may not trust, the old financial system might benefit in some ways from cryptocurrencies. One feature of cryptocurrencies is that anyone can engage outside of that system due to its decentralized and permission-less nature.

One does not require permission from any governmental or financial institution to use the crypto ecosystem. Additionally, having a bank account is not a requirement for participants. In the modern world, billions of individuals are “unbanked” and do not have access to the banking system, especially bank accounts. But with cryptocurrency, all those folks need is a smartphone to potentially become their bank.

No need to follow bank rules and regulations.

There are no intermediaries present when you wish to carry out crypto transactions.

Banks or other payment systems can terminate anybody’s services at any time and for any cause. This might make things challenging for certain journalists, political dissidents, or others operating in countries with oppressive government regimes. On the other hand, preventing anyone from using Bitcoin or the majority of other cryptocurrencies is exceedingly challenging due to the lack of central authority controlling them.

Implementations of new technologies.

When Bitcoin hit the market, only a few took the risk of investing in it. Thus any transaction that occurred was very cheap. However, as the popularity and the rate of adoption started to increase, many cracks started to be noticed by the developers. 

As a result, other developers jumped in and started to answer Bitcoin’s shortcomings by moving from Proof-of-Work to Proof-of-Stake. As time progresses, the chances of this model may also evolve. Thus, cryptocurrencies are forever adapting and evolving to answer problems that weren’t foreseen. 

Unique Cryptocurrencies.

Several cryptocurrencies are available in the market; a few differences from the other cryptocurrencies available in the market. Although cryptocurrency is relatively new, it has spawned several other cryptocurrencies that are unique, and each trying to be as huge as Bitcoin.

Since there is competition in the market, one can be assured that you are investing in good crypto after carefully analyzing and researching cryptos of your interest.

Play-to-Earn Opportunities.

Traditionally cryptos are mined, requiring mining gigs to do this activity. However, there are a few cryptos that collaborate with games to create a game where you have the opportunity to earn in cryptos.

A few games are available in the market based on cryptos and are now gaining popularity. Thus, earning while enjoying a game is quite appealing among the younger generation.

Conclusion:

The implementation of the latest technology and the ease of using cryptos are slowly but surely catching up.

The pandemic has enlightened many about cryptocurrency trading and its benefits to the masses. 

It cannot be denied that cryptocurrencies are here to stay and are our future forward.

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