The term Bitcoin and cryptocurrency have become increasingly popular in recent years with many people asking, why invest in cryptocurrency?
There is a lot more to investing in cryptocurrency than most people are aware of. Cryptocurrency is based on the blockchain, the cutting of technology and financial products and with this new technology, there are many ways to invest in crypto.
Here are the four of the more common ways to invest in crypto:
The most popular and common reason people invest in cryptocurrency is for pure speculation - that is in the hopes that the price will increase over time. In the last decade, we have seen an incredible increase in the price of many cryptocurrencies, like Bitcoin which over 10 years ago was less than a dollar. Recently, it peaked at almost $70,000.
Investing in Crypto as a Hedge against Inflation
Some investors are looking to crypto as a hedge against inflation and a method to diversify their portfolio with the goal of the price of crypto increasing greater than the current inflation rate.
Investing in Crypto as a Store of Value
Most crypto investors are not aware that there are cryptocurrencies known as stablecoins, which are assets pegged to a fiat currency. For many investors, this is an excellent method to hold funds within the crypto space while not being subjected to the high volatility of the market.
Investing in Crypto to Earn Passive Income
Similar to traditional bank accounts, many cryptocurrencies offer what is known as staking, a method to earn an effective interest on your crypto holdings. Many of the returns offered by cryptocurrencies are far greater than those offered by traditional banks.
Whether you are new to crypto or have been in this space for a while, it has something to offer for every investor. Currently, there are over 10,000 different cryptocurrencies actively traded and every day new ones are being created. To learn more about the investment opportunities and how to invest in cryptocurrency as well as the latest trends within the cryptocurrency space, check out www.altcoininvestor.com