The crypto rave has been on for many years, with many investors braving the murky waters to reap rich rewards. Simultaneously, fortunes have been lost in an unfortunate turn of events, either through ill-advised carelessness or a lack of foresight from the investor.
Like any other economic market, the crypto industry has ups and downs. 2022 was its worst year to date, with major tokens like Bitcoin, Ethereum, and Cardano having their values plunge below what even the most pessimistic analyst would predict. The bearish market run saw a massive sell-off of tokens, and investors scrambled to cut their losses.
However, the opposite is the case in 2023. After the latest prolonged bear run, things are finally looking up again. Bitcoin is leading the way, and many altcoins are following, thriving in its wake. It now appears that the worst of the bear run is over, and there are many indications that 2023 will be a fantastic year for crypto investors.
Also read : Bitcoin (BTC) Price Hike and BIP 324 Integration: Making It Harder For Governments to Censor Transactions
Here are some reasons why you should invest in cryptocurrency right now:
A Bullish Run Is Imminent
The stages in a market cycle are only apparent after the cycle has ended. Over the years, crypto price movements have signalled trends that have subsequently been identified as various stages in the market cycle. Last year’s bear run was arguably a downtrend, one that extended beyond the crypto market into traditional stocks.
Although some analysts may be pessimistic about crypto fortunes in the short term, many signs show that the market is in a markup phase.
If you’re considering investing in cryptocurrency, there’s no better time to invest than the present. If you’re in doubt, check the charts and recent coin trends.
Excellent Way to Diversify Your Investment Portfolio
If you’re an adherent of traditional investing, cryptocurrency investments provide a low-barrier entry alternative. Stocks, bonds, ETFs, mutual funds, securities, real estate, and foreign exchange markets are all great options. However, they all, to a large extent, rely on the same market forces and operating mechanisms. This means that a crash in the value of one can result in a corresponding downturn in the fortunes of others.
Unlike stocks and bonds, cryptocurrency is not determined by a centralised market economy. As such, they’re a great way for investors to diversify their portfolios while truly earning significant returns over time.
Blockchain Technology Is Not Going Away
Much of the crypto market’s fortunes are reliant on the viability of its underlying blockchain technology.
Although the currently trending niche in tech is artificial intelligence, the sheer functionality of blockchain technology makes it certain that it’s not going away.
In fact, a subjective glance at the evolution of crypto and decentralised technologies infers that the industry is very much in its early days. As such, despite their volatility, cryptocurrency tokens will only grow from strength to strength. And, as more countries adopt crypto and successfully regulate its use, its value will only increase. In light of this, there’s no better time to invest in crypto than now.
Alternative to Traditional Finances
The death of traditional banking systems may be further than is often speculated by some of the more ardent activists of blockchain technology. However, there is no denying that decentralised finance has positioned itself not only as an alternative to traditional banking and a complete replacement if necessary.
Such a radical overhauling may be many decades or even centuries away. Nevertheless, cryptocurrency performs several functions today. It powers a decentralised form of secure, permissionless transactions, and DeFi technologies enable access to a wide range of financial products and services, including loans.
Although early-bird cryptocurrency investors are the biggest winners, it’s still not too late to jump on the bandwagon and own some promising altcoins.
Conclusion
Although crypto and blockchain technology have drawn their fair share of ire and scepticism from neutrals and anti-proponents, the market keeps going strong.
With an aggregated global market capitalisation of over $1 trillion, the industry’s sheer financial value cannot be ignored for much longer. Even if you weren’t lucky enough to purchase Bitcoin when it cost less than a dollar, there’s still plenty of investment opportunities for you in the crypto market.
You just need to get started!
Frequently Asked Questions
Is Cryptocurrency a Good Investment?
Given the trajectory of market prices, cryptocurrency remains an excellent investment, regardless of its inherent volatility.
How Can I Make Money from Cryptocurrency?
You can earn a steady passive income from cryptocurrency by investing in promising tokens with potentially significant rewards. For this, you’ll have to watch the market keenly and carry out plenty of research on your chosen cryptos.
Is the Crypto Market on a Bear Run Today?
While 2022 was undisputedly a bad year for cryptocurrencies, 2023 has started off on a bit of a bullish run, with prices widely expected to rise.