Cryptocurrency may not be what the world is focusing on right now, but ironically this is precisely why it is the best time for first timers to be investigating it. Global markets are down on the back of the coronavirus outbreak, which presents a fantastic buying opportunity, and we’ve put together our top four reasons why now is the best time to be investing in cryptocurrency, from a fundamental as well as a situational point of view.
Cryptocurrencies are Cheap
Cryptocurrencies are cheap right now, thanks to a number of factors. One of these is down to market cycles. All assets have market cycles made up of a bull market, a bear market, an accumulation period, and into a bull market again.
During its 11-year history, Bitcoin alone has seen three major market cycles, with the last one taking place in 2017 which saw it hit almost $20,000. Cryptocurrency markets were going through a recovery period when the coronavirus hit, and the price crash that has followed has presented another great time to buy into the market. When the appetite for risk returns as the coronavirus subsides, those investing in cryptocurrencies now will be in a perfect position to make the most of any ensuing recovery.
All assets go through these market cycles, and as long as the fundamental principles of a cryptocurrency are intact then buying off the back of a crash when they are cheap should be embraced rather than feared.
Cryptocurrency as a medium of exchange has seen huge development and adoption in the past 12 months, fueling the notion that more and more big investors are buying it up and more businesses are willing to accept it.
From smartphone makers building crypto wallets into their devices to huge brands like Starbucks on the verge of accepting Bitcoin payments, it is clear that we are at the start of a huge movement that will have massive ramifications for those projects that have the potential to stick around for the duration.
Securing your crypto is currently the safest that it has ever been. While there are some rules that should always be followed to protect yourself, such as only keeping the minimum amount of money on a cryptocurrency exchange, a cluster of industry-leading exchanges has emerged that are extremely safe, many with having insurance in place to replace losses.
In terms of other storage, hardware wallets are more sophisticated than ever, making sure that your crypto is incredibly safe and almost impossible to access by third parties. If you follow basic security guidelines then there is no reason why your cryptocurrency should ever be at risk these days.
As well the safety aspect, it is also easier than ever before to invest in cryptocurrencies. Gone are the days when you had to arrange to meet someone in a McDonalds to swap your cash for Bitcoin – it’s easy to buy any number of cryptocurrencies through any of the top exchanges.
Banks are becoming more willing to deal with cryptocurrency-handling entities, meaning withdrawing your money into your bank account doesn’t flag up on systems in the way it used to. It is also possible to set up regular purchases through some cryptocurrency exchanges, allowing you to buy a small amount every month and accrue your portfolio that way, which is great for those who are on the forgetful side.
As you can see there are plenty of reasons to invest in cryptocurrencies right now. Once you’ve dipped a toe in the cryptocurrency and blockchain pool it’s almost impossible not to have the rest of you follow, and if you start today you could find yourself doing it at just the right time.