Words like “Bitcoin,” “blockchain,” and “crypto” have been burbling under the surface through most of the 2010s. Now, in 2021, cryptocurrency has broken into mainstream consciousness. Perhaps this new world has piqued your interest as an investment opportunity. The mechanisms of cryptocurrency may be novel and unfamiliar to most, but you don’t need to author a book on the blockchain to invest in crypto with success. You simply need money, patience, and the desire to take a chance on something new, as these reasons to invest in cryptocurrency will demonstrate.
Think about how index funds revolutionized the stock market. Instead of risking investments on one stock or another, it turned out that the best prescription for steady and reliable long-term growth was to put a little bit of money in a little bit of everything—an all-you-can-invest buffet. Zoom out from the stock market, and that principle holds true with investing in the grand scheme of things, too. Put some money in stocks, some in bonds, some in the money market, and now, some in crypto. While putting your life savings in cryptocurrency is not advisable, diversifying with it can be a useful bulwark against vacillations in mainstream markets.
Long-Term Growth for Retirement
As you’re exploring the new world of cryptocurrency, it’s hard to see yourself in your grandparents’ shoes. Retirement seems a long way off, and your version of retirement may not be anything like theirs. But with cryptocurrency’s reliable growth, this investment could pay off for retirement. Crypto is permitted in self-directed investment services, which modernize the traditional IRA by allowing for much more diversification than its more limited counterpart. By holding on to crypto in the long run—a very long run—you can build a retirement fund to rely on, no matter what retirement ends up looking like for you.
So Many Coins, So Little Time
Let’s continue the theme of diversification. In the popular imagination, crypto and Bitcoin are synonymous—with the largest market share and public fame (or infamy), tech novices may not be able to imagine a world of cryptocurrencies beyond Bitcoin. On the contrary, there is a bevy of coins to invest in, and while they may not have the name recognition that Bitcoin boasts, they may be worthy investments, nonetheless. Currencies such as Ethereum, Tether, and Monero could be on the rise, and with so many cryptocurrencies to explore, you can diversify with modest investments in each.
Be Involved in History
One of the best reasons to invest in cryptocurrency is simply the thrill of it all. By taking part in crypto, you become part of the technological vanguard, exploring new horizons in how we use computers and live our lives. If you love being ahead of the curve, this is the investment opportunity for you. Whether or not a full cryptocurrency revolution ever takes place, you will have played your part, however small, in a pivotal chapter of financial and technological history.