Cryptocurrencies are becoming more popular every day. Investors and tech geeks alike are flocking to digital assets in droves. Unless you’ve been hiding under a rock for the past few years, you’ve probably heard of Bitcoin, Ethereum, ripple, and a host of other digital currencies.
These virtual coins have exploded in popularity over the past year or so, with many people wondering if they should get involved as well. They are decentralized which means that there isn’t any financial institution or government controlling them. Instead, they are traded peer-to-peer on crypto exchanges like Bitcoin Code or Gemini. That makes them independent of central banks and gives them more credibility than regular fiat currencies do. Here are top reasons why you should buy some Cryptocurrencies too…
They provide censorship resistance.
Cryptocurrencies are decentralized. This means there is no one in charge of them. That makes them censorship-resistant. There have been many governments that do not like the idea of people having their own money without anyone taking control of it. This is why many of them have banned Cryptocurrencies. That is because the government has the power to make all the laws that affect you and they want to control your finances.
Bitcoin has proven to be a very resilient asset that is resistant to censorship. If a government blocks access to the Bitcoin network, then they will still be able to access it via a crypto exchange. This makes it a very resilient way to store value and transfer funds across borders.
They are limited to fiat currency replacement.
Another great advantage to holding a cryptocurrency is that it is a limited fiat currency replacement. If the value of a particular fiat currency like the USD or GBP goes down, then holding that same amount of dollars or pounds will only get you so much. But if you have a cryptocurrency, then you can sell it and use the money to buy something else.
Even better, you can use it to trade for another cryptocurrency that might have more value. This is why many financial experts have recommended investors diversify their investments by holding some cryptocurrency funds. You don’t have to go out and buy a bunch of Bitcoin or other assets at once, but rather invest in a few different ones that you’re familiar with. This could help you hedge the risk of a fiat currency going down in value.
They can be used for micropayments.
Another benefit of holding Cryptocurrencies is that they can be used for micropayments. If you have a friend who will appreciate a coffee or a gift card, then you can send them some Bitcoin. This can help to cut out the middleman when it comes to paying friends or family.
It doesn’t cost them a couple of dollars that they don’t need anyway. It also means that they don’t have to worry about their credit card company taking a fee or if their bank decides to block the transaction. That is a great advantage over cash.
You Should Know – How Are Cryptocurrencies Taxed?
They provide financial security.
Lastly, Cryptocurrencies can help you to provide financial security. You can store your wealth in an insurance-like way. You can use a hardware or software wallet to store your digital coins. This way, if something were to happen to you, your family would be able to get access to your wealth without being able to trace it back to you directly. That is a useful way to provide financial security for yourself and your loved ones.
All in all, Cryptocurrencies are a great investment opportunity. They are hard to find, difficult to obtain, and have a good chance of going up in value. It’s a great way to diversify your wealth, hedge against a falling fiat currency, and provide financial security for your loved ones. Before you invest a significant amount of your savings, you should do some research. You can learn more by reading this article on investing in Cryptocurrencies. You should also consult with a financial planner or investment advisor to make sure you are making an informed decision.