Crypto-Curious: Expanding Your Investment Portfolio
Ever since the rise of bitcoin from almost nothing to over $60,000 in 2021, the world began to see cryptocurrencies in a different light. Although the early adopters of bitcoin are relishing the gains of their investment - some of which are multimillionaires now - experts have said that it's still quite early to join the crypto world.
Today we have large institutional investors who are beginning to invest in crypto projects. The likes of Elon Musk, Bill Miller, and Carl Icahn have made a massive turn to embrace crypto and channel significant investments into various cryptocurrency projects. Interestingly, some of these billionaires were the ones who didn't just have doubts but completely disregarded bitcoin when it launched in 2009.
However, it seems everyone wants a piece of the cake. So why the massive shift? What changed the minds of these big-time investors? This article will focus on why traditional investors are beginning to consider, and even prefer, crypto as they expand their portfolios.
Unlike stock investing or apartment building investing, where you only see significant profits after a few years. With cryptocurrency, you can double or quadruple your principal in one year or less. Cryptocurrencies like Solana and Etherium are just a few out of the many that spiked in less than a year. Bitcoin went from almost nothing in 2010 to over $500 in 2013: So if you had bought a thousand bitcoin in 2010 at $0.01 (meaning you spent $10), barely three years later, you would've been $500,000 richer. No real estate, bonds, or shares can give you such massive gains in such a short period.
Early adopters of bitcoin are millionaires today for doing what seems like nothing. Meanwhile, stock investors would monitor stock trades, and real estate investors would have to maintain their assets while waiting for major profits, usually after 3 - 5 years.
Cryptocurrency can comfortably give you 10,000% returns for long-term investment and 100% returns for the short term. Check out this bitcoin chart showing its rise from 2010 to 2021.
It is speculated that bitcoin may continue to rise to $100,000 in the next decade of its use. Investors have realized what they missed, so they're wary of making the same mistake they did the first time.
When the internet first launched in the late 1990s, a lot of people were skeptical about it, saying it wasn't safe, it was a scam and all that. Only a few risk-takers invested in the internet, and even fewer businesses were bold enough to take their business online. Today, these are the billionaires we know; names like Bill Gates, Jimmy Wales (founder of Wikipedia), and several others today are where they made that big shift when many of their peers were in doubt.
The internet revolutionized the world and business as it were. Today too, it seems history is repeating itself. Cryptocurrencies are here, and it seems they've come to stay. In the same way the internet took businesses and companies digital, so too cryptos will take our hard currencies digital. Investors would give anything to go back and invest in the internet in its early days. But since they can’t, crypto is the next best thing that has the same impact.
Yes, crypto has made many common people who knew little about investments, stocks, real estate, bonds, etc., into millionaires. There are many testimonials from all over the world about how cryptocurrency has changed lives. This is why you find so many people on Twitter and Telegram chasing airdrops. They know that just one lucky coin can change their lives forever.
Seasoned investors with all the traditional knowledge of investing see this as the new gold rush. If crypto assets can make anyone rich, imagine what it can do for active investors who can dig into all its underlying factors?
There are many ways to make money from crypto. You can invest in small assets, trade crypto futures, farm and stake crypto, mine cryptocurrencies, etc.
Also, there are many assets to choose from, both new and old. The new ones, usually airdropped for free to a whitelisted minority, sometimes hold the most potential but aren't always trusted. However, trusted assets like bitcoin may not experience spikes like newer crypto projects, but they're safe and recognized worldwide.
Given the wide range of opportunities and quick returns, no other form of traditional investment comes close to what the cryptocurrency world offers.
Stockbrokers would tell you to have a certain minimum amount before you can buy stocks. Shareholders would tell you the price of shares. Even real estate consultants would tell you how much capital you must have before you can set up or own real estate. But with cryptocurrencies, there are no limits or capital barriers to entry.
You can invest in as many projects, coins or tokens as you want, with whatever amount you choose. It all boils down to how much risk you're willing to take and how much money you want to make in returns. That’s attractive to anyone.
Another reason investors are turning to crypto investments rather than investing in stock is that cryptocurrencies are easier to buy than stock. There are a variety of cryptocurrency platforms available that are easy to use and offer many different ways to buy assets (debit and credit cards, PayPal, bank transfer, etc.).
Most investors who passed on bitcoin during its early days are making a U-turn on that decision nowadays. Be that as it may, it's not too late to invest in cryptocurrencies. You never know which token can become the next bitcoin or Ethereum. Remember that the crypto world rewards early adopters, patient investors, and action takers.
Published on May 12rd, 2022, guest post by Young and the Invested.
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