How Adding Crypto to Your Investment Portfolio Can Benefit You?
Cryptocurrencies were originally met with skepticism by many investors and they weren’t even compared with traditional assets because they weren’t considered as a valuable addition to the investment portfolio of both retail and institutional investors.
However, as cryptocurrencies became more popular and they have matured over the last decade, today they are considered valuable digital assets. If you’re also looking to include cryptocurrencies in your portfolio, it’s essential to understand what cryptocurrencies are and what are the main benefits of adding crypto to you your investment portfolio. That being said, in this article, we will go through the crucial benefits of crypto for investors.
What Are Cryptocurrencies?
In contrast to traditional currencies, cryptocurrencies exist only in a virtual format and are used as a medium to transfer funds online. They are also used for investment purposes and as a store of value. The first cryptocurrency that was created was Bitcoin, afterwards, a lot of different currencies entered the market, and today there are approximately 10,000 digital currencies.
Low Transaction Fees
Cryptocurrencies are famous for their low transaction fees associated with crypto payments. It doesn’t matter if you’re using cryptocurrencies to shop online or you’re trading; the crypto transaction fees are fairly low especially compared to traditional currencies.
However, it’s worth mentioning that there might be differences for one cryptocurrency or another especially because the crypto transaction fees are based on the competition and the traffic in the blockchain network. For example, for Bitcoin when there was huge popularity of the cryptocurrency for the first time in 2017 and the traffic exploded in the network, the transaction fees also reached a record high of $50. But according to the traffic in the network, the transaction fees will also fluctuate, and generally, there are minimal, even when it comes to cross-border crypto transactions.
Availability on Trading Site
Another advantage of investing in crypto is that it is a straightforward process that is facilitated on online trading sites. You can also register on an automated trading platform like https://bitiqapp.com/ and invest in crypto. This is a top choice if you have little experience with crypto trading or the crypto market.
The automated trading platform is based on highly modern artificial intelligence technology that is able to read large data sets, predict market trends and adjust to the dynamic market conditions at any given moment. You can create your account with a deposit of $250.
Processing Time and Confidential Information
The processing time of cryptocurrencies on the market is fairly short for Bitcoin. On average it will take about 10 minutes for one block of transactions to be added to the network. However again it will depend on the structure of the blockchain system.
Otherwise, another advantage in investing in crypto is that there are some cryptocurrencies on the market that grant anonymity to the users and protect the real identity of the receiver and the sender of cryptocurrencies on the market.
Store of Value
Some cryptocurrencies have reached the status of safe-haven assets including BTC. The main reason why currencies are regarded as a good hedge against inflation is that they are decentralized and are not controlled or managed by any central authority. This made BTC more immune to the fluctuations in the financial markets including the financial crisis, social unrests, recession, and other factors that might disrupt or hinder the growth of traditional currencies.
Moreover, some cryptocurrencies have a limited supply of coins this also makes them rare and valuable, especially if there is a higher demand for that currency than the available supply. Another reason why a cryptocurrency would be considered a store of value is that the price tends to appreciate over time- the latest example would be Bitcoin’s bull market phase between 2020 and 2021.
