Why cryptocurrency is becoming the go-to investing vehicle
Most people in the Devon area will have heard of cryptocurrency. Popular coins like Bitcoin have made the news in recent years because of a rapid rise in value and their growing fanbase. This has caused individual investors and larger financial institutions to look at investing in cryptocurrency. Indeed, so great has the rise to prominence of the digital currency been, it is now becoming the go-to currency for investment. That is a distinct change from the past where standard FIAT currencies would be the preferred choice in the world’s financial markets.
Why has cryptocurrency become the choice of many Devon-based investors over the more traditional currencies?
It can deliver great returns
All investors look at getting the best possible return on any capital they commit. While trading FIAT currencies on the FX market can offer decent returns, it often does not match the gains that cryptocurrencies can provide. Bitcoin is a classic example of this and it has enjoyed a very good run over recent years. When you see that the Bitcoin price in June 2013 was $100 but it had risen to around the $13,000 level by June 2019, this is obvious. If you had invested in June 2013 you would have made a very handsome profit.
It is an easy currency to invest in
Whether you choose Bitcoin or one of the other coins to invest in, there are a few things that make digital currencies stand out as an investment opportunity. The first is the ease in which you can begin trading them. The market is easy to understand and there are lots of reputable online brokers or exchanges to use to invest. Crypto trading can also be transacted by using automated robotic software. This is handy for newer traders or those who do not have the time to spend hours manually analysing charts. If would like to know more about how they operate the best crypto trading robots are shown on this page
A highly volatile and liquid market
One other reason that crypto trading is becoming popular is the sheer volatility and liquidity of the market. There is no doubt that the forex market is huge in its own right for investing in traditional currencies but some pairs can often be flat in terms of trading activity. That makes it hard to make a profit from any price movement in your favour. Many are instead switching to crypto trading as it puts you at the heart of a market which is always moving. While you do have to be careful that you are on the right side of it, the volatility is what attracts many traders.
Crypto is seen as fairer by many investors
While there is no hard evidence to support it, many investors have become wary of investing in traditional currencies as they fear the market is too open to interference from large corporations or governments. As digital currency is not centrally controlled by any state or person, investing in it does not pose the same problem. Investors in crypto can be sure of no interference in the price movement of any coin they trade and thus can be more confident of things happening as their analysis predicts.
It is being seen as a safe haven currency
As with gold, coins like Bitcoin are now being seen as a safe haven in times of global unrest. The problem with traditional currency is that it is open to wild fluctuations which world events can bring. The recent U.S./China trade war is a great example and could have really hit the value of the U.S. dollar or Chinese Yuan. Digital currency is unaffected by events like that and this makes them a more stable, safer choice for many investors. The same is not true for traditional currencies which are highly interconnected via the global economy.
Cryptocurrency could become the premier investment currency
Although digital currencies like Ethereum or Bitcoin are nothing new they have always been in the shadow of traditional currencies when it comes to investment. This has really started to change in recent times as more people begin to feel comfortable in trading in these digital coins. Whether you are a business in Devon looking to invest spare profits or a Devon resident looking to generate some extra income, this type of investment has become a feasible option. With more mainstream media attention and more widespread usage in daily life, we could soon see cryptocurrencies as the number one currency investment choice.
