Cryptocurrency has been an innovative and rapidly growing market for a while now, and many people wonder if it’s the right choice to invest in. While it’s true that there are some risks associated with the market, it’s also true that the profit potential is immense. Puai Wichman believes several compelling reasons exist to start investing in cryptocurrency today.
It’s Decentralized.
Cryptocurrency has brought new freedom and flexibility to the investing world. As a decentralized currency, it offers investors more control over their money than traditional investments. The lack of a central authority means that cryptocurrency prices remain unaffected by world events—the perfect solution for those who want their investments to retain their value over time. And while some may think that using cryptocurrency sounds complicated, plenty of resources offer step-by-step instructions on using your preferred coins to buy goods and services online. All in all, PuaiWichman says that cryptocurrency presents a new and exciting option for investors looking to diversify their portfolios and stay ahead of the game in the ever-changing world of finance.
The Volatility
One of the biggest draws to this type of investing is its volatility. But what exactly does that mean? Volatility is the percentage change of a cryptocurrency’s value over a certain period. Although many perceive high volatility as a risky move, it also means that there is potential for higher rewards. The unique nature of cryptocurrency offers investors much higher volatility than other assets, making it an exciting opportunity for those looking to make a profitable investment.
Bitcoin transactions are inexpensive.
Are you tired of paying exorbitant bank fees for international money transfers? Bitcoin’s a faster, cheaper, and much more efficient solution. Puai Wichman explains that when you transact with Bitcoin, you bypass the middleman (i.e., the bank) and all the fees that come with it. Sending $100 to someone in another country would typically cost around $30 in fees with a traditional bank transfer. With Bitcoin, you could do the same transaction for less than a dollar. Isn’t that amazing? Not only are you saving money, but you’re also benefiting from a seamless and speedy transaction process. Say goodbye to unnecessary fees and hello to the future of digital currency with Bitcoin.
The value of cryptocurrency isn’t based on anything.
Cryptocurrencies have been on a rollercoaster of popularity and controversy in recent years. Some critics argue that the value of cryptocurrencies isn’t based on anything concrete, and therefore, they’re not a legitimate form of currency. However, cryptocurrency enthusiasts and investors beg to differ. Despite not being attached to physical assets, cryptocurrencies still hold significant value. This value is based entirely on the trust and faith that people have in them. Puai Wichman notes that the popularity and usage of cryptocurrencies have grown immensely, indicating that the value of cryptocurrencies has become more and more tangible to everyday people. Ultimately, the worth of a currency is determined by how much people believe in it – whether it’s a fiat currency or a cryptocurrency.
The concept of HODL
One of the most popular reasons people invest in crypto is the concept of HOD Ling. HOD Ling, or “hold on for dear life,” means buying a coin and holding it for a long-term investment. It’s the opposite of short-term trading, but many believe it’s the key to making real money in the crypto world. While buying low and selling high is the traditional strategy, it’s not always effective in a volatile market. But by holding on to your investment, you can ride the highs and lows and potentially see significant gains over time. HOD Ling requires patience, but it could be the strategy that pays off in the long run.
Puai Wichman is the founder and CEO of Or a Partners, an international trust provider and wealth management firm.