4 Reasons To Invest In Crypto And Why It Is Among The Best Options Today

If there was ever an argument for investing in crypto, it’d be the price of Bitcoin. To all the naysayers out there, we say the following: On May 1, 2015, Bitcoin was priced at ₹15,785. On May 1, 2020, it reached ₹7,57,394. This translates to a total growth of 4,698% and a yearly increase of 116.88%.

There is no other investment option where you can expect a yearly growth rate of 116.88%.To put this in perspective, let’s draw some parallels.

Since its inception, the BSE Sensex has grown at roughly 17 to 18% per year. Gold has grown at an average rate of 10% per year. As for FDs, that has an average yearly return of 6%. Bitcoin grew at six times the growth in the stock market.

These figures, however, are in the past. The answer to the question, “Is Bitcoin a good investment in 2022?” will depend on the future.

So join us as we weigh the factors and reach a conclusion on the matter of crypto investments.

Should You Consider Investing In Crypto?

Crypto investments started increasing in popularity after the price of Bitcoin exploded. Such sensational returns always draw optimists, and it was no different here. More and more people started flocking into this previously unknown market.

According to Reuters, “Industry estimates suggest there are 15 million to 20 million crypto investors in India, with total crypto holdings of around 400 billion rupees.” This has brought the crypto market to an interesting fork in the road.

On the one hand, there is this previously unknown asset. Not too many people understand the implications and the ramifications of this asset. New blockchain networks are coming up and more and more crypto tokens are being launched. There are discussions about where cryptocurrency will fit into our financial networks in the future.

On the other hand, this obscure asset is attracting billions. More and more investors are flocking to it. New trading platforms are coming up and the market is getting bigger and bigger. In other words, it is a hive of speculative trading activity.

If you throw in Elon Musk’s involvement and the volatilities brought on by Reddit trends, we’ve got on our hands a hotpot of trouble!

There is also the fact that since Bitcoin reached its all-time high price of Rs 51,09,531 in September 2021, it has fallen to Rs 16,05,255. This marks a retracement of 68% from the peak.

So the question is — Is Bitcoin past its prime or is this the time to invest? For the answer, we need to look to the future. Let’s consider the following facts.

Sound and secure base

Cryptocurrencies are based on blockchain technology, which provides a digital ledger and facilitates transactions without any intermediary. In other words, you can carry out financial transactions without the presence of a central bank or any third party. The technology secures the interaction between the two parties and safeguards it.

Increasing popularity

There are over 15 million retail investors in cryptocurrency in India. There are more than 230 startups in this sector and it is poised to be a global leader. In other words, Indian investors are bullish on cryptocurrency.

Government regulations

As more and more retail investors are taking part in crypto investments (basics of investing), the government has stepped in to regulate the space. This will mean taxation on crypto investments, of course, but it will also bring stability and safety to the space. This, in turn, will encourage more investors to participate.

Future opportunities

Tier 2 and Tier 3 cities are jumping on the crypto bandwagon. With the rise of P2P platforms, more and more millennials are flocking to this sector. There are new innovations, new technology and new companies cropping up all over. This sector is ripe with potential and it will manifest over the next few years.

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How To Invest In Crypto In 2022

Cryptocurrency platforms are easily available now. From CoinDCX to WazirX to CoinSwitch Kuber, this sector has attracted a lot of funding and talent. Investing is as easy as choosing a platform and opening an account. Because this sector is not highly regulated yet, you don’t have to go through a lengthy KYC process. You’ll be able to complete it in a couple of minutes.

Then, transfer your money and buy the crypto of your choice!

EXPERT TIP: Cryptocurrency is open for trading 24/7. You can buy and sell at any time. You can also buy and sell any crypto in fractional amounts as well.

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Don’t risk the newer coins that are being launched. If you are starting off, stick to strong coins like Bitcoin and Ethereum. Start with small amounts and keep buying whenever the price falls.

This will be a long-term investment, but if the sector takes off, it will pay off!

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