Since its inception over ten years ago, Bitcoin has experienced both unprecedented highs and worrying lows. In the last three years however, its value has skyrocketed, which has led to many other startups following suit and creating their own cryptocurrencies. Ethereum, Litecoin, Ripple and Stellar are just a few examples of the c.4,000 different cryptocurrencies which have created a strong competitive market, with plenty of investment opportunities for both new and experienced investors. So why is now a good time to get involved? There are an unlimited number of answers to this question, but to help you get the ball rolling as quickly as possible, here are the main three…
- Cryptocurrency Trading is for everybody
In the past, stock trading was largely seen as something that only the wealthy participated in. If you went into any coffee house in the centre of any city within typical working hours, you were sure to hear at least one person boasting about how many shares they own, but you wouldn’t have heard any such conversations in a low-price diner frequented by the working class. Aside from social media, which has helped bridge the information gap between the classes, Bitcoin has been a key factor in making investment a more viable option for people from all financial backgrounds. The main reason for this is that cryptocurrency allows you to start small. While the exact minimum amount varies depending on which exchange you use, some allow you to invest as little as $2. This is great for sceptical first time investors, with low disposable income, who cannot afford to speculate with large amounts of money. You can find more information on which exchanges allow you to invest the least amount initially on Cryptowisser.
- Share Prices Keep Rising
While some would describe the cryptocurrency market as volatile, others would point to the ever rising share prices of established brands like Bitcoin, Ethereum and Litecoin as evidence of a steadily growing industry. The limited supply of bitcoin actually makes it more similar to Gold in the fact that it protects it from the kind of volatility certain businesses and currencies experience, as when supplies are low, they simply create more, which decreases value. Bitcoin share prices, for example, have risen 90% since the beginning of this year and over 800% in the last 12 months and others are doing the same. Yes, it’s true that not all cryptocurrencies have enjoyed the same trajectory, however, as with any business, the established names continue to rise, and the newcomers with the boldest strategies always find their way into the race. So the key for new investors is to choose established cryptocurrencies and to carefully choose to back upcoming ones which have potential.
- You’ll Soon Be Able to Buy Products With It
One of the main criticisms of cryptocurrency trading has been based around the fact that you couldn’t use it to purchase things. Such criticisms will soon be a thing of the past, Elon Musk recently announced that US customers will now be able to purchase Tesla cars entirely using bitcoin. Not only that, Musk has also stated that the bitcoin received in such transactions will not be converted to dollars, but remain as bitcoin. This ensures that it won’t be used to make more dollars, but instead, strengthen the Bitcoin pool. Such a seismic announcement from a company considered to be one of today’s greatest innovators means we can expect many other companies to follow suit in the near future. Additionally as other cryptocurrencies continue to rise in popularity and value, we can be sure that said companies will start accepting payments from them too.