# 7 Reasons why you should invest in Cryptocurrency Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-06 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: 7 Reasons to Invest in Cryptocurrency Today Meta Description: Discover the benefits of investing in decentralised, volatile cryptocurrency with low transaction fees and high potential for rewards. Start HODLing now! URL: https://financedigest.com/7-reasons-why-you-should-invest-in-cryptocurrencyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1401461124-1736814371881-compressed.jpg) If you’re thinking about investing in cryptocurrency, you might be wondering if it’s the right move. Even with high levels of volatility in the market and the constant threat of hacking and fraud, more and more people are making their way into the cryptocurrency market, so it’s likely that there will be many more opportunities to get in on the action before prices drop again. Here are seven reasons why you should invest in cryptocurrency today. **Reason 1: It’s Decentralised** Cryptocurrency is decentralised, meaning it’s not subject to government or [financial institution](https://www.financedigest.com/a-cloud-migration-guide-for-financial-institutions.html "A Cloud Migration Guide for Financial Institutions") control. This is a major selling point for crypto investors, as it offers [more freedom and flexibility than traditional investments](https://www.cnbc.com/2022/08/26/bitcoin-btc-price-key-metric-flashes-bottom-for-the-crypto.html). Additionally, the lack of centralized authorities means that the [prices are unaffected by world](https://www.financedigest.com/world-food-prices-hit-record-high-in-2022.html "World food prices hit record high in 2022") events such as terrorist attacks or inflationary periods, making them an attractive option for those who want their money to retain its value over time. Plus, using cryptocurrency isn’t difficult. There are many [resources available that offer](https://www.financedigest.com/copper-miner-teck-resources-rejects-glencores-22-5-billion-offer.html "Copper miner Teck Resources rejects Glencore’s .5 billion offer") step-by-step instructions on how to use your preferred coins to buy goods and services online. One of the most popular methods is Bitcoin which can be used at merchants like [Amazon through services like Bitpay which charge minimal transaction fees](https://www.financedigest.com/analysis-visas-amazon-spat-shows-power-is-shifting-to-retailers-in-fee-battle.html "Analysis-Visa’s Amazon spat shows power is shifting to retailers in fee battle"). There are also other alternatives such as Bitcoin which have lower [transaction fees but slower confirmation times due to their lower network security](https://www.financedigest.com/contis-enables-google-pay-to-make-transacting-easier-and-more-secure.html "Contis enables Google Pay to make transacting easier and more secure") level. You can even buy USDC, as offered by [Bybit](https://www.bybit.com/en-us/learn/crypto/buy-usdc), and always research what is best for you. **Reason 2: The Volatility** One of the most appealing things about [investing in cryptocurrency is the volatility](https://www.financedigest.com/italys-a2a-trims-green-investment-plan-citing-economy-volatile-markets.html "Italy’s A2A trims green investment plan citing economy, volatile markets"). This is the percentage change of a given [asset over a period of time](https://www.financedigest.com/tough-times-and-risky-business-which-emerging-market-assets-are-a-bet-worth-taking.html "Tough times and risky business – which emerging market assets are a bet worth taking"), and it’s one of the key things that investors look at when making decisions. In general, the [higher the volatility, the higher the risk](https://www.financedigest.com/dollar-higher-on-risk-aversion-euro-revisits-parity.html "Dollar higher on risk aversion; euro revisits parity"). However, it also means that there’s potential for greater rewards. With cryptocurrency, you can see [much higher volatility](https://www.cbsnews.com/news/buying-cryptocurrency-security-privacy-protection-wallet/) than with other assets. **Reason 3: Bitcoin Transactions are Inexpensive** When you make a transaction with Bitcoin, there are no bank fees. In fact, Bitcoin [transactions are often faster and cheaper than traditional bank](https://www.financedigest.com/igtb-launch-digital-transaction-banking-available-as-saas.html "iGTB launch Digital Transaction Banking available as SaaS") transfers. For example, if you were to send $100 to someone in another country, it would typically [cost around $30 in fees](https://www.financedigest.com/the-cost-of-buying-a-leasehold-why-can-it-cost-more-in-conveyancing-fees.html "The Cost of Buying a Leasehold: Why Can it Cost More in Conveyancing Fees?"). With Bitcoin, you could do the same transaction for less than a dollar. **Reason 4: The Value of [Crypto Currency](https://www.financedigest.com/how-to-use-algorithms-to-save-time-and-make-money-when-trading-currency-crypto-shares-etc.html "How to use algorithms to save time and make money when trading (currency, crypto, shares etc)") is Not Based on Anything** Cryptocurrencies aren’t based on any assets, so their value isn’t derived from anything physical. That doesn’t mean that cryptocurrencies are valueless, though. Their value is based on the faith that people have in them. **Reason 5: HODL** One of the most popular [reasons for investing](https://www.financedigest.com/5-compelling-reasons-that-you-should-invest-in-branding.html "5 Compelling Reasons That You Should Invest In Branding") in cryptocurrency is the concept of HODLing. HODL is an acronym for hold on for dear life and it represents the [strategy of buying a coin and holding it for a long-term investment](https://www.financedigest.com/2018-it-security-predictions-methods-for-attacks-investment-areas-cybersecurity-strategies.html "2018 IT Security Predictions-Methods For Attacks, Investment Areas & Cybersecurity Strategies"). Many people believe that the key to making [money in the crypto world is to buy low and sell](https://www.financedigest.com/selling-advice-five-expert-tips-on-how-to-avoid-gazundering-when-selling-your-home-to-save-you-money.html "Selling advice: Five expert tips on how to avoid gazundering when selling your home to save you money") high, but this isn’t always the case. The current [market volatility](https://www.financedigest.com/puma-confirms-full-year-outlook-flags-market-volatility.html "Puma confirms full-year outlook, flags market volatility") can cause prices to skyrocket or plummet at any time, which can make this strategy difficult. HODLing allows you to ride out the highs and lows with your investment and if you’re lucky, you may [see some serious gains](https://www.financedigest.com/ifrs-16-cfos-can-see-quick-gains-connected-planning-technology.html "IFRS 16: CFOs can see quick gains with Connected Planning technology") over time. **Reason 6: ICOs Offer a Lot of** [Growth Potential](https://www.financedigest.com/intracranial-pressure-monitors-market-is-set-for-a-potential-growth-worldwide.html "Intracranial Pressure Monitors Market is Set for a Potential Growth Worldwide") If you’re looking for an investment that offers a lot of growth potential, you should definitely [consider investing](https://www.financedigest.com/norway-wealth-fund-to-consider-investing-in-unlisted-equities.html "Norway wealth fund to consider investing in unlisted equities") in cryptocurrency. One of the reasons for this is that many startups are using Initial Coin Offerings (ICOs) to [raise funds](https://www.financedigest.com/nissan-pushes-partner-renault-to-sell-down-stake-may-raise-funds-source.html "Nissan pushes partner Renault to sell down stake, may raise funds -source"). ICOs are similar to IPOs, but they’re usually open to anyone who wants to invest. This means that you don’t have to be an [accredited investor](https://www.financedigest.com/checkprint-retains-investors-in-people-accreditation-again.html "Checkprint Retains Investors in People Accreditation Again ") to participate. **Reason 7: The [Technology Holds](https://www.financedigest.com/five-technology-challenges-that-are-holding-back-legal-innovation.html "Five technology challenges that are holding back legal innovation") Many Opportunities** One of the most important aspects of any investment is [understanding the underlying technology](https://www.theguardian.com/technology/2022/aug/24/techscape-ethereum-proof-of-work). With cryptocurrency, you’re not just investing in a currency – you’re investing in the [blockchain technology](https://www.financedigest.com/how-to-create-a-more-efficient-transparent-and-trusted-supply-chain-for-the-gold-jewellery-industry-using-blockchain-technology.html "How to create a more efficient, transparent and trusted supply chain for the gold jewellery industry using blockchain technology") that powers it. And that [technology holds](https://www.financedigest.com/the-new-wave-of-technology-what-does-the-future-hold-for-businesses.html "The New Wave of Technology, What Does the Future Hold for Businesses?") many opportunities. For example, [blockchain provides a decentralised system for secure transactions](https://www.financedigest.com/rambus-unveils-vaultify-trade-for-secure-transaction-and-storage-of-crypto-assets-on-blockchain.html "Rambus Unveils Vaultify Trade for Secure Transaction and Storage of Crypto Assets on Blockchain") without third-party interference or government regulation. It also has potential to make [banking and insurance services more efficient while also allowing companies to use smart contracts](https://www.financedigest.com/axion-swiss-bank-and-avaloq-sign-long-term-contract-for-bpo-services.html "Axion Swiss Bank and Avaloq sign long-term contract for BPO services") on a wide scale and making transactions much cheaper for consumers. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---