Bitcoin has experienced both unprecedented highs and troubling lows since its inception over ten years ago. However, its value has skyrocketed in the last three years, prompting many other startups to follow suit and create their own cryptocurrencies.
Ethereum, Litecoin, Ripple, and Stellar are just a few of the over 4,000 different cryptocurrencies that have created a highly competitive market with numerous investment opportunities for both new and experienced investors.
So, what makes this a good time to get involved?
There are an infinite number of answers to this question, but to get you started as soon as possible, here are the main three…
1. Cryptocurrency trading is open to all.
Historically, stock trading was thought to be primarily the domain of the wealthy. If you went into any coffee shop in the heart of any city during normal working hours, you would almost certainly hear at least one person bragging about how many shares they own, but you would not have heard such conversations in a low-priced diner frequented by the working class.
Aside from social media, which has helped to bridge the information gap between classes, Bitcoin has been a critical factor in making investment a more viable option for people of all financial backgrounds. The primary reason for this is that cryptocurrency enables you to begin small.
While the exact amount varies depending on the exchange, some allow you to invest as little as $2. This is ideal for first-time investors who are sceptical and have limited disposable income and cannot afford to speculate with large sums of money.
2. Share prices continue to rise.
While some describe the cryptocurrency market as volatile, others point to the consistently rising share prices of well-known brands such as Bitcoin, Ethereum, and Litecoin as evidence of a steadily growing industry. Bitcoin’s limited supply makes it more similar to gold in that it protects it from the kind of volatility that certain businesses and currencies experience, because when supplies are low, they simply create more, lowering value.
Bitcoin share prices, for example, have increased by 90% since the beginning of the year and by over 800% in the last year, and others are following suit. True, not all cryptocurrencies have followed the same path; however, as with any business, established names continue to rise, and newcomers with the most audacious strategies always find their way into the race.
As a result, the key for new investors is to select established cryptocurrencies while also carefully selecting to back upcoming ones with potential.
3. You’ll Be Able to Buy Products With It Soon
One of the most common criticisms levelled at cryptocurrency trading has been that it cannot be used to make purchases. Such criticisms will soon be obsolete, as Elon Musk recently announced that US customers will be able to purchase Tesla vehicles entirely in bitcoin.
Furthermore, Musk has stated that the bitcoin received in such transactions will not be converted to dollars, but will instead remain as bitcoin.
This ensures that it will not be used to generate more dollars, but will instead be used to strengthen the Bitcoin pool. With such a seismic announcement from one of today’s most innovative companies, we can expect many other companies to follow suit in the near future. Furthermore, as other cryptocurrencies gain popularity and value, we can expect these companies to begin accepting payments from them as well.