How cryptocurrency could be a stable investment



Fiat money remains to be the primary medium of exchange for centuries. It’s one of those things that don’t seem to require any innovation or improvement. Even when credit cards were developed, some people still needed to pay their dues through cash. 
However, Satoshi Nakamoto revolutionized the fintech world through cryptocurrency, specifically, by creating bitcoin (BTC). This digital money is created and spent virtually. Of course, it can still be converted to cash when you need it, so theoretically cryptocurrency is a stable investment.
Cryptocurrencies have risen to popularity in recent years, so much so that several platforms have popped up globally to cater to the demand for buying, selling, and trading them. Cryptocurrency exchange can even be a stable investment. Here are the reasons why:
1. High returns
People’s sudden interest in cryptocurrency has led to a surge in its value. With this, those who placed money in it during its early stages have already enjoyed high returns from their initial investments. 
Although cryptocurrency is notorious for its volatility, this phenomenon is actually ideal for day traders because they just need to watch out for dips in the price of BTC or altcoins. Once they see an opportunity, they can purchase some coins and wait for the value to surge again. This way, they can earn a profit from their money.
As with any investment venture, though, there’s still the risk of losses, especially when you dive into the project without any concrete plan or strategy. Make sure that you research intensively and understand the workings of cryptocurrencies before you invest in them. You can start by learning how to buy Bitcoin here.
2. Decentralization
If you’ve ever been discouraged about investing because you feel that you don’t have full control over your money, cryptocurrency investments may be ideal for you. The decentralized nature of the system allows peer-to-peer transfers. The ledgers are public, so you can easily monitor the transactions made on the platform.
Since cryptocurrency networks aren’t regulated by governments, its trading community is not barred or limited by regional restrictions. Through this, there are more opportunities for investing since there are more people with whom you can trade. Plus, transaction fees are kept minimal due to its inclusive setup, and there’s the fact that users don’t have to pay middlemen like governments and local banks for their services.
3. Inflation hedge
One of cryptocurrency’s value propositions is that it can be used as a hedge against inflation. This makes sense as it’s often deemed as a better alternative to cash with its decentralization, public ledgers, and online network. 
Inflation happens when fiat money loses its purchasing power. The Coronavirus pandemic, for example, has affected the economy and has led to what experts call the Great Monetary Inflation (GMI). This phenomenon serves as a first-aid solution to the economic damages brought about by the virus. However, it might no longer be effective in the long run.
Safe assets like precious metals, especially gold, have performed well even with the financial crisis. They aren’t as affordable, though, so people are looking for other opportunities that may come from investing in Bitcoin and other cryptocurrencies.
4. Liquidity
As mentioned above, cryptos can be easily converted to cash if you need it. Liquidity is a crucial factor to consider when looking for investment options. This is particularly true if your primary objective for investing is to have funds in case you or your loved ones experience a health crisis or other emergencies.
When you start investing in cryptocurrencies, you must check the cashing out process of potential platforms. This way, you’ll be aware of the level of liquidity that the exchange offers, and you won’t be surprised about not being able to access your funds when you need them.
5. Price increase potential
Cryptocurrencies have gained notoriety for volatile prices, which is why a lot of investors aren’t confident putting their money in these networks. However, volatility seems to be part of the natural cycle of cryptocurrencies. Bitcoin, for example, has successfully surpassed its volatile phase and has stabilized in more recent years.
Plus, as stated earlier, the demand for these alternative assets can grow, which can lead to a surge in their value. This makes them an ideal investment option, especially for investors who are looking for long-term opportunities.
Conclusion
Cryptocurrencies like BTC are viable investment options, whether you want to become a day trader or a long-term investor. These digital assets can give you high returns and a hedge against inflation. The decentralized nature of these systems also fosters a global community, which can provide you with more opportunities in trade and transaction. 
Cryptocurrency investments are liquid as well as a stable investment. Lastly, it has a high chance of increasing value in the future since more and more people and institutions have slowly adopted cryptos as a payment method and asset.

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