The past few years have seen the growth of the use of the term cryptocurrency. In a nutshell, cryptocurrency is simply a digital currency that is not regulated by a centralized authority. Cryptocurrency works under blockchain technology, where information is chained on many computers, making it more secure.
The most famous cryptocurrencies include Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ripple, Stellar, Neo and Cardano. The truth is that investing in crypto or trading in securities is a risky affair. However, the advantages outweigh the disadvantages.
The million-dollar question is should Canadians invest in cryptocurrencies? We had a session with our expert Kevin Cochran, and the following are some of the main reasons you should start investing in cryptocurrency and security.
1. Great Returns
Cryptocurrencies have not been with us for long. However, it is worth noting that for the little time cryptocurrencies have been with us, they have proven to be more profitable than other available investments.
Let’s take the example of Bitcoin. The coin started gaining popularity between 2009-2010. At that time, the coin had no value and people transacted with the coin for hobby purposes. In the period between February and March 2011, the coin was valued at 1 USD. Fast forward to 2023, the value of 1 bitcoin is equivalent to 38000 USD.
This means that if you bought 1 bitcoin in 2011 at 1USD, less than ten years later, it would be valued at a whopping 38000 USD. This is a great return. This means that crypto records incredible returns over a very short time. No business guarantees constant profits over short periods, but crypto is possible, thus making it a lucrative venture.
2. No 3rd Parties Involved
Cryptocurrency comes with levels of independence that you wouldn’t get from any other form of money. Let’s take the example of keeping your money in a bank. Anytime you want to access your own money, you are required to go through a lot of paperwork.
The banks also censor the movement of money, especially when loading casinos online. The bank determines the amount of money they want to deduct from your own money through transactional costs. Some banks also do not allow you to withdraw all your money from your account as the account cannot be left without any money. This is not the case for cryptocurrency.
In crypto, you are your own boss meaning that your money is yours and you have full control over it. The peer-to-peer network has allowed Bitcoin to change the gambling sector a lot; in a world where we know that casinos are more profitable than sports betting. You determine when and how to transact on your terms without the mercy of a 3rd party. Some Canadian casinos featured on https://casinocanada.com/ allow Canadian casino gamers to load their accounts or withdraw through various cryptocurrencies.
3. High Liquidity
A primary characteristic that a good asset should have is liquidity. Liquidity is simply the possibility of an asset being converted to cash with no effect on the market price. Cash is the world’s most liquid asset. The beauty of cryptocurrency is that you can easily trade it for cash. However, some people make a comparison of bets and casinos, arguing that high liquidity can lead to high losses.
Technology has played a major role in ensuring that buying and selling of cryptocurrencies can be done online. Here in Canada, there exist many cryptocurrency trading platforms, including Coin smart, Wealth simple Crypto, NDAX, Bit Buy, Binance, Mogo crypto and Coinmama. Here you can transact on your own on the crypto exchange or use a cryptocurrency broker.
Cryptocurrencies being an investment, is not a complicated form of investment. The truth is getting in some investments may be a very complicated and long process. Most investments have crazy entry thresholds. This means that you are required to invest a minimum amount of money for you to start the investment.
The beauty of cryptocurrency is that it is so simple to venture into. With the little that you have, you can buy crypto or participate in the forex market. Joining cryptocurrency is a fairly simple exercise that requires you to create an account and open an e-wallet. The wallet serves as your bank where deposits and withdrawals of crypto are made from.
Storing your wealth in a bank, for instance, would require you to physically go to the bank and fill a lot of paperwork so as to access your own money. Banks also charge transaction fees which are sometimes too much. The beauty of crypto is that you can buy, sell or transfer coins to and from your wallet from any place of convenience.
5. Cryptocurrency Market Hours
The beauty of the cryptocurrency market is that it is available for trade 24 hours a day and 7 days a week. Unlike commercial banks that operate only during their working hours, the cryptocurrency market runs full time.
The market may experience downtime at some specific times due to adjustments in prices but run smoothly after that. This makes it easy for you to analyze cryptocurrency market trends and know which is the best time to trade.
6. Ease of International Trade
Different countries have different currencies. This means that there must be transactional charges imposed for the exchange of currency in the event of a trade. Cryptocurrencies can come in handy to remedy the situation because it is not regulated.
This means that it is possible to make cross-border transfers without going through a country’s legal process. Though most countries do not recognize cryptocurrencies as legal tender, it might be a great tool in easing international trade.
7. Strong Security
Lastly, cryptocurrency may be the world’s most secure digital asset. This is mainly due to the fact that cryptocurrencies employ blockchain technology. Blockchain technology is a database that stores information (transaction ledgers) in blocks that are chained together chronologically.
This means that the data is decentralized, giving joint control of data implying no single person or group can alter the data. This makes all cryptocurrency market transactions very safe. Unlike cash, where you risk theft or reversing of transactions, you are assured of the safety of all your transactions in cryptocurrency. Cryptocurrency is the world’s new normal.
With the cryptocurrency market boasting a value of over 2 trillion dollars, cryptocurrency is projected to keep rising. Though cryptocurrency trading is volatile, sometimes experiencing low market values, it can prove to be one of the world’s greatest investments. With the points discussed above, you can see that it is a market that you should explore and start enjoying the benefits that come with it.