It’s 2021, and the cryptocurrency market is booming. The remarkable growth of cryptos like Bitcoin, Ethereum, Tether, Binance Coin, and Dogecoin have all been backed by big names in the finance sector, leaving little doubt about the future of these digital currencies.
As of the start of the year, more than 4,000 cryptocurrencies were in existence. This just goes to show just how much the idea of decentralized currency has entrenched itself in our lives.
But if that doesn’t convince you enough to consider at least investing in cryptocurrency, here are three more reasons you should consider.
1. You’ll Enjoy Tax-Free Returns
If you’re looking to grow your investment portfolio and maybe enjoy an early retirement, then you should probably think about investing in cryptocurrency.
You can store your wealth in a crypto IRA which will help you avoid paying the taxman income taxes on your investments. That’s because the IRS gives special tax benefits to different kinds of IRAs, including SDIRAs (self-directed IRAs).
Note that you’ll need a custodian to guide you through the process. Then, depending on the provider you choose, you can buy and trade your crypto with other holders to make tidy gains.
2. There’s a Wide Variety of Cryptocurrencies to Try Out
There’s an endless list of cryptocurrencies you can consider for your portfolio. Pioneers such as Bitcoin and Ethereum are well established and can be somewhat expensive. However, there are also emerging coins that have immense growth potential. Think along the lines of Cardano, Solana, and Dogecoin.
What does this mean for someone investing in cryptocurrency?
The variety of cryptocurrencies means that you get to choose what you want to buy based on your investment budget and needs. But, most importantly, investing in crypto means you get to diversify your investments.
Instead of putting all your eggs in one basket, you’ll get to spread out your risks. This way, if one asset underperforms, you’ll be covered by another.
3. Investing in cryptocurrency Isn’t Rocket Science
Lastly, cryptocurrency trading isn’t just for the pros. A few years back, Bitcoin and the likes seemed like a reserve for the tech-savvy. These days, however, various platforms and crypto professionals have simplified the process by a significant margin. You also don’t have to know how to go about crypto mining to get started, as you can always buy some with fiat money.
You also don’t need to go through the entire trading learning curve to begin. You can consult an IRA custodian instead to guide you on how to start buying and selling cryptocurrency easily.
What Are You Waiting For?
If you’ve thought about investing in crypto, but for one reason or the other, have shied away, it’s not too late to take the plunge. There’s a lot of flexibility in cryptocurrency investing, making it an excellent choice for those looking for short- or long-term investment options.
You can buy and hold it until the value goes up or, with a bit of skill and professional help, dive into day trading.