Skeptical or believer—which group do you belong to when it comes to cryptocurrencies? Now, there’s a big chunk of people who have gotten into the crypto space. As per a report, there are roughly 221 million crypto users across the globe as of June 2021. That’s a vast amount of people trying out something that has existed for only more than a decade.
While this is undeniably an impressive number, let’s not forget that our planet houses over 7.8 billion people. Now, if we’re going to take a step back and look at the bigger picture, that 221 million people is just a tiny fraction of the world’s total population.
We’re left with the reality that many of our folks on Earth are still wondering what to do—should they buy Bitcoin with credit cards, banks, and more, or just go on with life and watch from the sidelines? To help you and other pondering people out there, we made lists of reasons you should invest in crypto now and why you shouldn’t.
? Why people shouldn’t get on with crypto investing
Let’s start with five of the many reasons why people ought not to invest in cryptocurrencies.
- It demands research
We’re not going to lie; the crypto universe is complex and intimidating at first. That’s why it’s essential to understand the ins and outs before you finally decide to invest in Bitcoin and other digital coins out there. Think of it as a new subject at school with a lot of homework. You’ll need to surf the Internet a lot to find answers to your questions before you can totally understand what it is and how it works.
However, since crypto is an ever-growing industry, lots of studies and resources are now available online. It isn’t that hard to get the hang of it anymore. It might seem like rocket science at first, but if you really want to learn more about it, the number of credible resources won’t be a problem.
- It’s a highly speculative investment
It’s a highly volatile asset and the movements in the market are unpredictable. Like any other asset, there’s also no sure-fire way to guess if tomorrow will bring you a better financial situation with cryptocurrencies. If you’ve been in the crypto space for a while now, you’ve probably seen Bitcoin making headlines for extreme price changes. Try to revisit some news articles and you’ll have a better grasp of what we’re trying to say.
- It might be challenging for non-tech savvy folks
Bitcoin and other cryptocurrencies run solely digitally. There’s no such thing as Bitcoin paper bills or physical BTC coins. Everything is done with the help of technology and the Internet. While many people might consider this an impressive and innovative move for a currency, non-tech-savvy individuals will beg to disagree. This is especially true for some Baby Boomers who aren’t digital natives.
- It comes with a lot of “what ifs”
Since cryptos are still relatively young, lots of things aren’t still sure about them. While they’ve been around for more than 10 years now, many changes and advancements are still happening. It’s safe to say that we’re still in the phase of discovering what cryptos really are, where they can be used, and where they would take our financial future, among other things.
- It’s not for people who are prone to FOMO
Cryptos’ value can hit the roof today and reach rock bottom tomorrow. This extreme reality makes it unmatched for people who are most susceptible to fear of missing out (FOMO). This is the uncomfortable feeling you get when others are enjoying something and you want in.
It’s similar to being anxious that you don’t have enough BTC to sell or hold when its value suddenly shoots up. Or the feeling you can have when you’re holding huge fractions of Bitcoin and its price plunges all of a sudden. FOMO can drive people to make hasty financial decisions that they could later regret.
? Why people should start investing in crypto right away
Now that we know some of the explanations on why you shouldn’t invest in cryptocurrencies, let’s look at the many reasons you should dip your toes in the waters of crypto.
- It’s ideal for those who have enough money to spare for investing
Many say that cryptocurrencies like Bitcoin are an excellent investment. This is why people of different age groups have started their adventure right away. Cryptocurrencies are also ideal if you have some cash spared for investment. Digital currencies, specifically BTC, is a highly divisible asset, which means you don’t need a considerable amount of money to get started.
Some peer-to-peer (P2P) marketplaces like Paxful allow you to get started with as little as 10 USD. As a bonus, you’ll also get a BTC wallet instantly after signing up.
- Its volatility can give you tons of advantage
Earlier, we’ve mentioned that BTC and other digital coins are highly volatile, but that isn’t always a bad thing. There’s a myriad of ways to use this volatility to your advantage. To get started, check out some investment and trading strategies and choose the ones that best fit your needs.
- It paves the way for financial inclusion
With cryptocurrencies, you don’t need to provide lots of personal information. This makes it very different from banks and other centralized financial institutions. All you need to have is a Bitcoin wallet and a reliable exchange and you’re good to go. Bitcoin’s decentralized nature paves the way for many people to finally access financial services that they didn’t get to have before. Anyone can create their own digital wallet—regardless of their age, place of residence, and more.
- Its systems and processes are worth knowing
The crypto world might be complex initially, but when you understand how it works, you’ll soon realize that it’s worth knowing—it’s no wonder why many companies from different industries are now adopting the use of blockchain and digital currencies. People are starting to tap into cryptocurrencies’ unique and innovative potential.
- It gives you a brand new financial experience
With cryptocurrencies, everything is digital. You no longer have to meet up with your financial advisor or pay a quick visit to the bank to check on your investments. Everything is right inside your crypto wallet and you can instantly view the market with a click or two on your browser. Digital currencies also provide you with another level of convenience. Faster, cheaper, and easier transactions are only a few taps away.
? To invest or not to invest?
We’ve pretty much summed up the top reasons why many people are still in a love-hate relationship with cryptocurrencies. Which among these points do you resonate with the most? More importantly, what group do you think you belong to now—are you a crypto believer or a digital coin skeptic? Is it now time to invest or not? Let us know!
*The content of this article is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. You should carry out your own independent verification of facts and data, do your own research and may want to seek professional advice before making any decisions.
