One of the most fascinating areas of the financial sector is the cryptocurrency market. In reality, it is the industry that is driving all of the technical advancements that promise to fundamentally alter finance.
Stocks vs. cryptocurrencies
In contrast to equities, which are only based on your local market, the cryptocurrency industry is global and trades around the clock, every day of the year. The idea that cryptocurrencies serve as a network asset or security is even more intriguing. Despite being provided by a firm, they are more valuable because of their worldwide network than because of a local market.
Consider the Ethereum example. Vitalik Buterin is the founder and CEO of the cryptocurrency Ethereum. Ethereum is traded all around the world, in contrast to Apple and Amazon, which are traded on US dollar-based exchanges (NASDAQ). As a result, everytime you buy a single Ethereum unit, you are also depending on global demand for Ethereum. Ethereum’s value is therefore based on utility and global demand.
The fact that cryptocurrencies are programmable money is another way in which they differ from stocks, bonds, and other types of assets or securities. They are functional assets or securities that enable network-based product creation.
However, a crypto share is ownership in a network that enables the creation and operation of several businesses. Therefore, by buying an Ethereum unit, you are actually diversifying your investment among all dApps and goods that are based on the Ethereum network.
The Revolution in Banking
Not the technology or the fact that the currency, asset, or security is a global financial instrument—all of which are true—is what makes cryptocurrencies genuinely innovative. The core value of cryptocurrencies originates from a very straightforward idea: personal banking. You give yourself the ability to act as your own banker when you buy a cryptocurrency asset. Cryptocurrencies may be conveniently stored in your private wallet, unlike holding cash, equities, bonds, and other similar assets.
It is not necessary for a third party, or custodial entity, to hold your assets. In other words, you are not required to manage or deposit your cryptocurrency with a financial institution or a bank. To protect your funds, all you need to do is get a cold or digital wallet. This implies that, in contrast to your ancestors who lived thousands of years ago, you possess the authority to hold and use your money without ceding that authority to the global financial institutions.
Volatility and Potential Profit
The top market makers will frequently mention the volatility of cryptocurrencies. That much is true. But it’s because of this volatility that you can put a little money in and come out rich. The same is true for losing all of your savings. To avoid losing money, only invest money that you can afford to lose. The notion that you have little chance of becoming wealthy if you do not invest in the upcoming financial instruments that will revolutionise business and our entire economy is something that is not extensively covered. That is crypto, too.
If you hadn’t made an investment in companies like Apple, Amazon, Google, or Facebook when they were first getting started, what chance would you have missed? Or even better, how would your financial status be if you had not been a part of the internet revolution that dramatically altered social media and business?
Cryptos are causing this to happen. The world’s whole economic system will either be replaced or operated entirely on blockchain technology. There is no getting away from it. Blockchain technology will soon be required for voting, legislation, and policymaking by even governments.
In reality, it is anti-democratic for governments to act secretly under the guise of openness and transparency while denying the public access to the laws and regulations being implemented. However, I digress!
Present market potential
The cryptocurrency market has lost 85% of its value since its All-Time Highs (ATH) in November 2021. Stocks also exhibit this, albeit not to the same extent. The Covid-19 pandemic, the war in Europe, and the ensuing energy shortages have had a significant negative influence on every sector of the economy. When the market turns around, however, cryptocurrencies will be the ones with the biggest potential returns. Stocks will increase, but not at the same rate as cryptocurrencies.
One of the finest times to amass crypto assets is right now, according to the market. The amount of opportunity in the crypto industry is beyond belief. Just try to picture what it would be like to buy Cardano now for $0.35 when it was trading for $3.10 in September of last year. Or the chance to buy Polkadot at a discounted price of $6.06 while it was trading at $55 at the ATH. Take a look at Bitcoin’s current price of $19,300 in relation to its ATP price of $68,991 for an even more potent transaction.
This is not financial advise, but if you want to make substantial money and possibly achieve economic independence, you should think about using cryptocurrency in your entire portfolio. Crypto is the way of the future. A decentralised economy based on blockchain technology is becoming the norm for the entire planet. To grasp the changes occurring right now, all you have to do is read the news or watch financial networks.
Either one adapts to the changes or they destroy them. You now have the authority to make choices, the ability to control and own your assets, and the tools and access to invest internationally. Everything else is up to you!