It isn’t every day that investors have the opportunity to get in on the ground floor of a booming, new investment. And even when they do get that opportunity, few investors are willing to take the risk of being at the forefront. But cryptocurrencies offer investors a whole new world of investing, and the ability to invest in an entirely new class of assets that is still only in its infancy.
The first cryptocurrency, Bitcoin, was released to the public in the aftermath of the 2008 financial crisis. At first it was treated skeptically, seen at best as a mild curiosity, but within a decade, Bitcoin established itself not just as a viable payment medium, but also as an investment asset.
By now, most people have heard of Bitcoin, even if they may not know how it works. They may also have heard of other cryptocurrencies, such as Ethereum and Litecoin. So why should you invest in cryptocurrency?
Investment Potential
Investments like cryptocurrency represent the future of investing and a whole new asset class. As Bitcoin and other cryptocurrencies have garnered more mainstream interest and support, their value has increased. Every new merchant that accepts cryptocurrency as payment, every new exchange that supports cryptocurrency trading, and every institutional investor that bets on Bitcoin enhances the long-term viability and popularity of cryptocurrencies and adds to the network effect that will allow cryptocurrencies to flourish.
As cryptocurrencies continue their adoption by the mainstream, demand for them will increase. And because many cryptocurrencies such as Bitcoin have a fixed supply, those increases in demand should result in an increase in value, benefiting those who invested in cryptocurrencies early on.
Portfolio Diversification
Investment choices don’t always have to do with the potential to make investment gains. Sometimes investors choose an asset because it offers the ability to diversify an investment portfolio and to protect against risk in a particular sector.
Many investors think that by investing in a mix of stocks and bonds, their portfolios are diversified. But that isn’t necessarily true. The smartest investors want a wide range of assets across multiple asset classes to feel truly diversified. Sticking just to stocks and bonds can put your entire portfolio at risk in the event of a major financial crisis. Alternative investments may hold the key to preventing total loss.
Gold and silver have traditionally been the choice of investors wanting to diversify their investment portfolio and protecting against financial risk, but today, cryptocurrencies are increasingly becoming the new digital gold and silver, playing the role of protecting at least a portion of your investment portfolio, and many investors are choosing cryptocurrencies as their investment hedge when stocks look set for a downturn.
Security
Cryptocurrency allows both users and investors the ability to convert funds into digital currency without having to rely on the banking system. The very reason behind the development of Bitcoin was to bypass the traditional banking system, create a currency that couldn’t be devalued by central banks, and wasn’t subject to all the fees, delays and time constraints of typical bank.
With Coin IRA and Equity Trust Company, a regulated custodian with over $39 billion in assets under custody and over 50 years of experience with self-directed IRAs, you are in the hands of experts in the alternative asset space, which gives you the freedom to invest in more than just the traditional assets of stock and mutual funds. Together we open the door to Cryptocurrency IRAs and Individual Taxable Cryptocurrency accounts, relieving investors of the responsibility and worry of safeguarding a wallet, storing their private keys, or navigating a complex storage device to buy and sell or send and receive cryptocurrency. Account holders can enjoy the peace of mind that their digital currency assets remain safe and sound in the care of one of the country’s largest self directed IRA custodians, and in the custody of insured, world-class cold storage, free of charge.
Convenience
Electronic payments are the way of the future, and it’s only a matter of time before most transactions will take place electronically. Whether through contactless payment systems, transfers over mobile phones or other methods, cryptocurrencies are uniquely adaptable to various methods of payment and transfer, and offer numerous advantages over cash and payment cards. Their ability to adapt to the changing needs of consumers and investors will ensure that cryptocurrencies will only continue to gain in popularity in the coming years, and that creates promise for investors as well.
If you are interested in learning more about investing in cryptocurrency, call our friendly customer support team at (866) 924-5421.