Top 11 reasons to invest in cryptocurrency

These days, it seems like everyone has likely heard about cryptocurrency. Most people at least know that Bitcoin is “on the blockchain,” even if they don’t know exactly what that means. Cryptocurrency has become part of pop culture, meme culture, and keeps growing in value, much to the surprise of skeptics who said it would never last.

Here are the top 11 reasons to invest in cryptocurrency.

11. #ThoseGainz

While any investment has inherent risk, and cryptocurrency is certainly volatile, if high-risk/high-reward is your style, where else can you get those 100x gains? This is what everyone talks about when crypto comes up in conversation. How could it not be when crypto billionaires were made in just a handful of years? Even if you’re not looking to rocket to the moon, 12% returns can be hard to come by in traditional investments, but they’re not uncommon in the history of cryptocurrencies.

10. Putting more eggs in more baskets

Ok, maybe you’re not so aggressive that you’re trying to become a billionaire overnight on the next 1,000x altcoin run. Maybe you already have a decent portfolio with traditional investments like stocks, bonds, real estate, or gold. Any good investor knows that it’s important to diversify with multiple types of assets. Crypto is an asset with an ever-increasing market cap and deciding what cryptocurrency to buy to diversify is not the worst thing you could do.

9. It’s easier than it used to be

I remember when I first heard about Bitcoin back in college. That was before any of the large exchanges and digital wallets like Coinbase or Binance were household names. I was interested in cryptocurrency but my biggest question was, “How do you even get it?” Today, there are lots of ways to buy crypto. You can even buy it right in the Cash App. The industry is still growing as far as UX is concerned and there is a learning curve, but if you start with a bit of research, like with any new investment, you’ll soon be on your way to creating a crypto investment strategy.

8. The ecosystem has been around the block

Before there was a public history of cryptocurrencies back in the early 2010s, it was a fair question to ask how worthwhile crypto investments would be. But in just a decade, the total market cap for cryptocurrencies reached $2 trillion. There’s no sign that it’s stopping either. Governments around the world are even researching digital fiat currencies using blockchain. Crypto has seen several market cycles already with bear markets that people said were the end of the fun and games. The summer of 2021, however, saw all-time highs in Bitcoin and a surging bull market for many altcoins.

7. The crypto movement is a community

Street cred and flexing on your friends may not be a huge motivating factor for you (or it might be), but every crypto enthusiast who believes in the vision of how decentralized digital currencies can revolutionize the financial system has shared that with a friend. Perhaps you’re here because of that one friend that won’t stop telling you to invest in cryptocurrency. There is a whole community of people who have similar goals and interests and who are learning together and bouncing around ideas about what cryptocurrency to buy.

6. You can send money anywhere

Back in the olden days before cryptocurrency, if you wanted to send money to another country, it was a pain. You had to hand-carry money and have it exchanged into the country’s local fiat for a fee, or you could send a wire using a middleman like Western Union, also for a hefty fee. Now you can send payments anywhere, to anyone, without having intermediaries taking a big cut. Anyone with a wallet address can receive your crypto transaction. If you need to send or receive payments across borders regularly, crypto is a great way to do it.

5. Understanding fintech better

Hopefully you weren’t one of the last people to start using the internet or smart phones—and let’s pray you weren’t the last person to own a Furby. But if you’re thinking of making your crypto investment strategy right now, you’re definitely not the last one. Technology evolves quickly and can change the world in a few years. The internet did, smartphones did, and fintech is poised to do it again. Cryptocurrency is the tip of that spear, and you’ll understand the new landscape and be prepared for it much sooner than most of the world if you invest in cryptocurrency.

4. Understanding the economy better

Most people who dip their toe in the cryptocurrency world discover there’s a lot they didn’t learn in school about money and how the economy works. The history of cryptocurrencies shows us that the people who dreamed up and created Bitcoin and its predecessors thought long and hard about the economy, monetary systems, and trust in financial institutions. They saw dangers and pitfalls in fiat currency that most people do not learn about and, therefore, cannot take into account when planning for their futures. Understanding which cryptocurrency to buy will give you a deeper understanding of money and how to secure your own future.

3. Sticking it to the man

Until cryptocurrency, it was impossible to avoid placing your trust in the government, banks, and other financial institutions who had control over all your wealth but whose decisions you may not always agree with. Now, there’s a whole booming ecosystem of decentralized finance (DeFi) that returns control over your own finances. Crypto gives you a political exit strategy that dollars never could—and the DeFi sector’s total value locked (TVL) growth continues, reaching an impressive $83.3 billion.

2. You hold what’s yours

It’s not just untangling yourself from creaking centralized powers that makes crypto attractive. You can also completely cut out custodians. You don’t need a bank account or brokerage account to hold your money. True self-custody is possible with cryptocurrency. Banks can’t hold a minimum deposit, credit cards can’t block your transactions, and exchanges don’t close trading outside of business hours. Cryptocurrency gives you independence and flexibility.

1. Inflation keeps coming

Even with what the government considers an “expected” rate of inflation around 2%, that’s still value that your dollars are losing every year. Over two decades, as you get closer to retirement, that adds up to 40% of your money’s value. Gone. Not only that, the inflation rate doesn’t always stay at 2%. After COVID-19 stimulus efforts in 2020, the CPI reached 5.4% in the summer of 2021. The right cryptocurrencies can be a hedge against inflation and help you maintain the value of your savings.

When will you invest in cryptocurrency?

These are some of the most compelling reasons to invest in cryptocurrency but there are so many more! You may even have your own specific reasons for entering the crypto world. Whatever your reasons are, you can begin building your crypto investment strategy, continue learning more, and discover your next steps right now.