WWhy do people invest in cryptocurrencies?
GOBankingRates conducted a survey of 1,037 Americans to find out if they are investing in cryptocurrencies and what are some of their main goals for investing in digital currency. Some of his main goals included the ability to diversify portfolios, build savings, make a quick fortune, and make money for specific goals such as education or travel.
Crypto on the GO: Check out our new crypto center page for the latest news and features
See also: The best cities to retire with $ 2,000 a month
Here are some goals, in addition to some more, that you can achieve by investing in cryptocurrency.
If you are looking for a way to diversify your portfolio beyond the typical stock and bonus basket, investing in cryptocurrency can provide you with this unique opportunity.
Find: 6 alternative investments to consider for diversification in 2022
Chris Kline, COO and co-founder of Bitcoin IRA, said there is a growing interest in investing in cryptocurrencies to diversify portfolios, especially retirement portfolios. This is likely due to expectations about the growth and growth of digital assets in the near and long term, and to their enthusiastic customer base.
“At least some exposure to cryptocurrency is fast becoming a prerequisite for a modern portfolio,” Kline said. “By addressing the current economic uncertainty, cryptocurrency can offer diversification and an alternative path for people of all ages.”
Patricia Trompeter, CEO of Sphere 3D, said one of the main reasons people invest in cryptocurrency is that it has capital potential. This means that there is a possibility of a high return on investment.
Long-term value warehouse
Jenny Ta, CEO of HODL Assets, said that most cryptocurrencies, unlike fiat money, have a limited supply limited by mathematical algorithms.
“Like stocks, they are speculative investments, so there is a lot of volatility and risk,” Ta said. “But yields can be much higher and response time much faster. It’s a matter of high growth in a short period of time.”
Ta uses the example of the Dogecoin frenzy of 2021. Investments in cryptocurrencies that had bought only $ 1,000 in Dogecoin in January or February had at least $ 14,600 in mid-May of that year.
“You can’t do it with actions,” Ta said. “Long-term growth cannot be surpassed by any other asset class.”
Freedom of transaction
Investing in crypto offers investors a lot of freedom to trade, something that most traditional banks cannot offer. If you need money, Trompeter said crypto and its related exchanges are easy to access and settle.
“And cryptocurrency is resistant to censorship,” Ta added, “which means anyone can send money on an equal footing, 24 hours a day, 7 days a day, without any interference from third parties.”
Cryptocurrency is reliable
The reliability of cryptography is another reason why people choose to invest in digital currencies. Because there is a finite supply of bitcoins, Trump said, it is a stable, long-term form of currency that cannot be subject to dilution of inflation by political or government agencies.
“One of the main reasons people are investing in cryptocurrency is in part because of the attractiveness of profits,” Kline added, “and because of the limitation of cryptocurrency as a potential safeguard against inflation.”
It is a social experience
If you’ve noticed that all of your friends and family are starting to invest in crypto, you may feel compelled to join to avoid FOMO and be part of the viral effect.
Tahem Verma, co-founder and CEO of Mesha, said having crypto is a social experience. Investors can be part of a community and interact with others around the world.
“When the richest person in the world sells a coin through social media and talks about it on‘ Saturday Night Live ’or people hear about friends who have made 50x, 100x or more who get involved in hot altcoin, it attracts others to the market, “said Ryan Hansen, Mercury Digital Assets’ chief sales officer. “Like investing in stocks, everyone wants to buy low and sell high and have a story about how they got to the beginning of the next big thing.”
You are the owner of what you buy
“Many tokens give you government and ownership of the product,” Verma said. “This means you are not only the user of the product but also the owner.”
Today, people have alternative asset options that differ from traditional assets. Kline said cryptocurrency has the potential to be like the Internet: foreign and unrelated to the principle, but inevitably ubiquitous and imperative.
More GOBankingRates content
This article originally appeared on GOBankingRates.com: 7 Reasons People Invest in Crypto
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.