Sunday, December 4, 2022
HomeFinance BlogsInvestmentsWhy Crypto Should Be Included in Your Investment Portfolio

Why Crypto Should Be Included in Your Investment Portfolio

As of 2022, the global blockchain market value is $10 billion. There are over 20,000 cryptocurrencies in circulation and hundreds of thousands of daily transactions. 

Some investors are still hesitant to put their money into crypto. It’s in its infancy and a volatile asset. While crypto is by no means a low-risk investment, there are certainly benefits to adding this modern investment vehicle to your portfolio. 

Keep reading to find out more about investing in cryptocurrency so that you can make the right financial decisions. 

High Risk, High Rewards

It’s no secret that investing in crypto is a high-risk investment due to its infancy compared to other investment options. Those who invested in cryptocurrency in the early days made a lot of money. 

However, in recent times there have been massive losses alongside huge gains. This fluctuation has seen from 94% annual returns to a terrifying 39.5% loss. 

So, what is the takeaway? If you have money to lose and are looking to add a high-risk investment to your portfolio, cryptocurrency is a great gamble. To reduce risk and see high rewards, you’ll need to be comfortable with the long game, letting your investment sit for years until the market stabilizes. 

Censorship-Resistant

One benefit of investing in cryptocurrency is that there is a limited supply, defined by mathematical algorithms. This is important because governments and other political powers cannot dilute the value through inflation; it’s simply impossible. Governments also cannot confiscate tokens. 

This means that your investment is safe even if financial disasters or hyperinflationary events occur. Interested in investing in cryptocurrency? Check out the blockchain KSM crypto price to get an idea of the current value and recent changes. 

Investing in the Future

Are you a future-forward investor? Then crypto should be a key aspect of your portfolio management. Many believe that crypto will become a part of daily life and transactions in the future, replacing currencies across the world. 

Even more progressive is blockchain technology, which could revolutionize many industries, from healthcare to banking. When you invest in crypto, you are investing in technology that may usher in a new era of economic activity. 

Portfolio Diversification

There is no other investment asset quite like crypto, which makes it ideal for diversifying your investment portfolio. As a non-correlated asset, crypto functions almost completely independently from other markets. 

If your portfolio is already full of stocks, EFTs, or bonds, adding crypto adds another level of diversification which could potentially result in huge returns.

Should You Add Crypto to Your Investment Portfolio? 

Crypto is definitely not for everyone. It’s a long-term investment that requires surplus capital. Adding crypto to your investment portfolio could lead to massive returns and losses.

However, you’ll be investing in future technology and diversifying your portfolio with an independent asset. 

Did you find this article interesting? Our site is packed with personal finance tips. Keep exploring for more articles!

Marketvein Staff
Marketvein Staffhttps://www.marketvein.com/
Born libra, likes to lead from the front. Digital Marketing & Technology is his strength. He has pursued engineering. Travelling to new places & writing is his idea of fun. In his free time (if he gets some that is), he is seen donning the chef's hat at home.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -Hire SEO Expert in India

Best insurance Articles Curated For You

Must Read

Automation Through Hotel Reservation Software Helps Increase Staff Productivity

Automation Through Hotel Reservation Software Helps Increase Staff Productivity

0
Managing a profitable hotel business is not an easy task. Ask any hotel manager and they will tell you that rising customer expectations and...
Masters in Singapore

Masters in Singapore

Types Of Investments In India

Types Of Investments In India

More Insurance Articles

LIC Jeevan Akshay VII Plans : Details, Benefits & Eligibility Criteria

0
LIC Jeevan Akshay VII is a non-linked single premium annuity plan which offers lifelong income after the policy term. This plan provides an immediate...

Mutual Fund Articles

7 Easy Quantitative Tools To Select The Best Mutual Fund

7 Easy Quantitative Tools To Select The Best Mutual Fund

0
You see mutual fund advertisements everywhere. It showcases that it is fairly easy to invest and earn a lot just from that. However, every...

Investment Articles

LIC Pension Plans

LIC Pension Plan – Best LIC Retirement Scheme in India

0
LIC Pension Plan is a retirement scheme offered by LIC of India. It offers guaranteed returns and is one of the best LIC retirement...