Trading crypto is a lucrative investment, especially for those who understand the fundamentals of trading. The value of bitcoin, for example, in July 2010, was 0.06/coin USD. Bitcoin’s value made the past 20,000$ mark for the first time on 16th December 2020. Such a spike is one of the many reasons to start trading crypto.
In this article, we will be discussing the top five reasons to start trading crypto in 2021. The first reason has been discussed lightly in the previous paragraph and makes the first reason to invest in cryptocurrency in 2021.
Trading Crypto is a Rewarding Investment
Bitcoin’s value rose by more than six percent against the dollar to reach an all-time high of more than $20,000 on 16th December 2020. This year alone, Bitcoin’s value rose by more than 400 percent from about $3600/coin to the current $20,000/coin. This surge has been attributed to the coronavirus pandemic, which prompted many companies and investors to look for alternative investments. An investor who invested in bitcoin early this year will have made more than four times the amount of money invested.
The value of bitcoin is expected to keep rising steadily in the coming years as more and more big multinational companies and financial institutions alike embrace trading crypto, an eligible reason to invest in cryptocurrency in 2021. The big companies see the potential of cryptocurrency in the coming years and add it to their investment portfolios. Bitcoin and other cryptocurrencies offer an opportunity to make huge chunks of money to investors without much effort.
The Inevitable Transition to Digital Economy
The global economy is quickly changing to a digital economy. Such changes as mobile money transfers are already operational in developing countries like India and countries in Africa like Kenya and Nigeria. This change is inevitable. The recent surge in cryptocurrencies is a clear manifestation of how the global economy is changing to accommodate cryptocurrency as a useful paperless way of paying for goods and services.
Big multinational companies including Square, MicroStrategy, Paypal among others have recently joined the growing number of companies that are investing in cryptocurrency. Some of these companies are Walmart, Barclays, and Intel. Such institutional investment in cryptocurrency has raised investor confidence in trading crypto. This phenomenon will likely lead to more investment by other companies, prompting its wide acceptance in business transactions and dealings.
This reason is one vivid explanation to those who may be cautious about investing in cryptocurrency in 2021. People who may still be thinking, why invest in cryptocurrency in 2021? should join the list of the growing number of people trading crypto.
Accessibility and Ease of Use
Traditional banking institutions have specific requirements that must be met to use the respective financial institutions’ services, locking out many people as a result. The use of cryptocurrency has given such individuals the ability to do so. One can buy and also trade in crypto for profit. Thus, trading crypto provides an alternative investment method and answers why you should invest in cryptocurrency in 2021?
Trading crypto is much more comfortable and accessible than traditional banks. All one needs to start trading crypto is smartphones, a working internet connection, and an online trading platform or app. Anyone, including newbies, can pretty much trade crypto with ease. Newbies only need the three items mentioned to start trading, even though they should take a keen interest in learning the ins and outs of crypto trading before fully immersing themselves in crypto trading.
Numerous online resources educate people on trading crypto fundamentals and the industry terms that a newbie must learn to enable them to make successful trades. One such resource is our website, where we give you accurate crypto trading information for free.
Cryptocurrency is Theft-Proof
Most people who do not trade crypto always have a fear of losing their money to hackers. Contrary to this popular belief, crypto trading uses one of the most theft-proof systems of transactions available for online transactions, a technology called blockchain technology. Blockchain ensures the crypto to be traded are owned by the current spender.
How does blockchain technology work? Blockchain technology employs encryption and smart contracts to make digital transactions secure, theft-proof, and hack-proof. These properties have led to blockchain being an online trading industry changer, receiving praises from the industry players and non-players alike.
The trader has Complete Control.
An individual investor needs a smartphone, internet connection, and a trading account to start trading crypto. Creating an online account in the various trading platforms is easy as it takes not more than an hour to set up an active account.
The trader has complete control over their crypto and account, unlike in a traditional banking setting where the bank stands in between you and your money or investment. The trader may buy and sell as he/ she willingly wants. The trader makes their careful analysis of the market, buys the crypto when the price is low, and sell it at higher prices when the prices spike.
Blockchain technology makes it possible for transactions to happen immediately, unlike in traditional financial institutions where a set of protocols, which may last for days or even weeks, is to be adhered to to complete a simple transaction. Such shortcomings of institutional trading make trading cryptocurrency a better investment alternative. In crypto trading, the trader has complete freedom to trade and make transactions as he/ she deems fit, and according to his/ her needs.
Cryptocurrencies to Invest in 2021
When one hears the word cryptocurrency many times, it is associated with bitcoin alone. Bitcoin is the most popular digital currency as of December 2020. However, it is not the only cryptocurrency in the market. Other alternative digital currencies, otherwise known as altcoins, have emerged due to bitcoin’s success. They are some of the cryptocurrencies to invest in 2021 and include Litecoin, Basic Attention Token (BAT), and Ethereum.
Ethereum is the second most popular digital currency after bitcoin. Ethereum’s value has recently skyrocketed, and this trend will continue in 2021. Thus, Ethereum is one of the best cryptocurrencies to invest in 2021. Litecoin is also another good option as it has a big following and lower prices than the other top coins. Also, Litecoin takes about 2 minutes only to mine, which is a relatively shorter time than the other cryptocurrencies. BAT was developed by one of the cofounders of the search engine Mozilla Firefox. The coin is popular with web developers, content creators, and marketing professionals as it serves their purpose.
Top Crypto Exchange to Trade in 2021
The trading platform used by the trader is not the sole determinant of success in trading crypto. Successful trading is a result of getting familiar with the trends in trading crypto. However, the information on the best trading platforms or exchanges will be helpful to traders, and especially newbies.
Coinbase is one such platform, as it supports a lot of cryptocurrencies and has a user-friendly interface. Etoro is another exchange platform that is popular with traders. Other top crypto exchanges to trade in 2021 include Coinmama, the right choice for beginners and crypto veterans.
Trading crypto is as lucrative as any other kind of investment. However, all crypto traders should be well-equipped with the right information at the right time to enable them to make good trading decisions. Our company, mycryptoparadise, is committed to providing you with the most accurate trading crypto signals to allow you to multiply your profits as we journey into 2021 and beyond. Are you interested to know more about crypto trading indicators click here to learn more.