Did you know that roughly 67% of millennials consider Bitcoin to be a safe haven asset? A safe haven asset is an asset that is expected to keep its value or possibly increase in value in the event that the economy takes a downturn.
While Bitcoin is generally considered a “safe” option in cryptocurrency, other virtual currencies can be used for different investing goals. So why should you invest in cryptocurrency?
Cryptocurrencies like Stellar Lumens, Solana, and Ethereum have huge upside and history of returns for their investors. The impressive returns have inspired many people to bolster their financial portfolios with cryptocurrencies.
The article below contains a list of reasons why you should invest in cryptocurrency. Whether you want to invest for the long-term or see if you can time the crypto market, there are plenty of reasons to consider investing in cryptocurrency. Read on to learn more about this exciting new asset class.
Cryptocurrency Can Help You Diversify Your Portfolio
One of the most important things you can do for your investment portfolio is to make sure it’s diversified. You shouldn’t hold all your money in one asset class.
Instead, you should spread your money across different asset classes. That way, you’ll be well-positioned to avoid losses if one asset class experiences a downturn. If you’re already investing in stocks or real estate, it may be smart to add cryptocurrency to your portfolio.
One of the benefits of cryptocurrency is that it’s a separate asset class from stocks. As a result, it may behave differently from other asset classes in different economic conditions.
Cryptocurrency Has the Potential for Huge Returns
Traditional asset classes like stocks, bonds, and real estate have a long history of returns to look back on. Broad stock market ETFs generally return 4-5% per year.
Bonds return less than that. Cryptocurrency is a relatively new asset class, so the potential returns are still unknown. For example, Bitcoin had 87.2% returns in 2018 and 302.8% returns in 2020.
Some other coins like Stellar Lumens and Ripple have been more stable, but still have the potential for high returns. You can use an exchange to buy Stellar Lumens and other coins.
Cryptocurrency Has Uses Beyond Investing
Did you know that cryptocurrency can be used to buy plenty of things in the real world and online? If you ever want to buy an NFT, you’ll need to have Ethereum, Solana, or one of the other cryptocurrencies that are used for NFTs.
Many restaurants, coffee shops, and online retailers accept Bitcoin. Try paying for something with cryptocurrency next time you’re making a purchase and see for yourself how convenient it is.
Why Should You Invest in Cryptocurrency in 2022
The article above should help you figure out why cryptocurrency is so popular among investors. So why should you invest in cryptocurrency as part of your investment portfolio? For even more information stay up to date with the other blogs on our website.