Cryptocurrencies Offer Investment Ease

| 2017-11-23
The world of investing can seem overwhelming to the newcomer. Before someone gets to learn more about a specific asset class, they must first decide which asset class to invest in! Real estate, stocks, bonds, precious metals, businesses, and cryptocurrencies are all assets a person can potentially place their money. And each comes with a multitude of information that must be understood to be successful. See how this can be overwhelming?

Luckily, there are assets that don’t have as large a learning curve as others. With today’s would-be investor strapped for both time and money, investment ease is very important. And cryptos offer that simplicity.

Cryptos Offer Simplicity

Low Cost of Entry

One of the advantages of cryptocurrencies over other assets like real estate and some businesses is low cost of entry. Investors can purchase cryptocurrencies without needing a lot of money, since cryptos can be purchased in parts, of fractions. There’s no need to buy an entire coin. For example, imagine that Bitcoin is currently valued at $8,000 per coin. Someone wanting to purchase Bitcoin doesn’t have to drop $8,000 to enter a position. They could simply buy whatever amount desired. If that amount was $100, they could buy 1.25% of a Bitcoin ($100/$8,000 = 0.0125, or 1.25%).

Liquid Market

Cryptocurrencies are a liquid market. Because there is a large number of buyers and sellers, it is easy to execute a trade quickly and at a desirable price. If an emergency arose and someone needed to sell their cryptos to have extra cash, they could easily do so. On the other hand, real estate requires substantially more time to close a transaction. With cryptos, transactions can be completed within seconds.

Easy to Manage

Lastly, cryptocurrencies are easily managed. Once an investor takes a position (makes a purchase), they can simply wait until the value increases. This strategy is called, “buy and hold.” In the crypto-sphere, it’s also affectionately known as HODL – Holding On for Dear Life. Large price swings are normal in the crypto world. Thus, crypto investors have to expect the swings as they HODL for the long-term.

Low cost of entry, a liquid market, and ease of management are all characteristics of cryptocurrencies that offer investors an asset class that’s simple to enter. Of course, each investor should do their own due diligence and increase their understanding through education. But if the future is anything like the past, the cryptocurrency world may definitely be worth the effort.

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