Why Should You Invest In Cryptocurrencies?
Since the introduction of Bitcoin back in 2009, cryptocurrencies have taken the technological and financial worlds by storm. These digital currencies may have started off as a practically worthless coin only found online, but as popularity grew and a hunger for an anonymous, far more secure method of payment increased, cryptocurrencies have certainly proven that they aren’t something to be ignored. From online casino bitcoin sites, to on-the-high-street retailers accepting cryptocurrencies as payments, the market is rapidly growing – so, should you jump on the bandwagon and invest in a cryptocurrency or two? Read on to find out.
What Cryptocurrencies Are Out There?
While Bitcoin is undeniably the most well-known of them all, there are hundreds of cryptocurrencies out there that are well worth taking a look at when it comes to investing. Here are just some of the most prominent:
- Bitcoin – Of course, Bitcoin is at the forefront and rightly so. As the first ‘cryptocurrency’, this digital coin started off being worth barely anything. In fact, even a year after its creation, it took a whole 10,000 of them just to buy two pizzas! However, over time the worth of these coins has skyrocketed, with one bitcoin being worth as much as £16,000 in early 2018! Bitcoin’s popularity, as with most cryptocurrencies, can be partly put down to the blockchain technology that acts as a public ledger for the currency, and the security and speed of transactions that accompany it.
- Litecoin – Litecoin was one of the first to follow Bitcoin, and is based on an open source global payment network. Like Bitcoin, there is no centralised authority, and instead uses ‘scrypt’ as proof of transactions. It is generally faster than Bitcoin, so could be one to watch in the future.
- Ethereum – Ethereum is a decentralised software platform that uses ‘Ether’ – its own cryptocurrency. This platform allows for Smart Contracts to be built and run with the added bonus that there is no downtime, fraud, control or any interference from third parties.
- Ripple – Ripple is a real-time global settlement network. This allows instant and low-cost international transactions, and is being picked up and used by various banks around the world due to its safe and secure payment methods.
Should You Invest?
Knowing whether or not to invest in these new and unique methods of payment is certainly a difficult decision to make, but it’s one that you’re looking to make regardless. With popularity growing, it can be tempting to invest regardless, but if you do need just a little extra cause to invest, here are a few more reasons:
The Market Is Still Young
Anyone who invests in any markets will know that a young market is an exciting one, as it can truly go one of many ways. Optimistic investors are already projecting future prices, and so there is more information that can help you decide which cryptocurrency to invest in, and when might be best to do just that.
Regulation Is Beginning To Roll Out
While the lack of regulation is a pull for some, those looking to invest might be a little more skeptical about investing in a currency that doesn’t have any regulation upon it. Luckily for those in that mindset, regulation around cryptocurrencies and online payments are already well on their way to being rolled out across the world, and so transactions, no matter their nature, are likely to be far safer, and the market is likely to settle and become less volatile.
Hopefully, this has given you a bit of an insight into the world of cryptocurrencies and whether or not you should invest. Of course, there is much more to learn about these cryptocurrencies and where investments could take you, but hopefully, this is a good starting point. Happy investing!
This page was last updated on February 12, 2018.