In the last couple of weeks, there has been a great struggle in the crypto community as the value of most cryptocurrencies plummeted. Coins like Bitcoin, Dogecoin, Ethereum, and SHIB are all presently struggling to get back on their feet after falling from their hit peal at the closing of last year.
Bitcoin is presently trading at $30,000 which is below its $31,332 last week. Compared to what it was last week, Bitcoin has fallen by about 17%. On the other hand, Ethereum increased from $2,166 to $2,360 from the previous week to this week.
With all these happenings in the crypto world, one might be tempted to start panicking and asking if investing in crypto is still worth it. Well, even though prices are presently not at their best in the market, this might sound like the best time to dip your legs into the crypto investing water and make some money. In this post, we will tell you some reasons we believe there could not be a better time to invest in cryptocurrencies than now.
What Is Responsible for Cryptos’ Loss In Values?
This is also a valid question to ask. According to CNBC, cryptocurrency is not the only one suffering from this drop in value. Even stock futures are getting their fair hit. And all this began to happen after the U.S. Department of Labor announced there was a good increase in the price of consumer prices – about 8.3%. This sudden increase in price caused panic among investors, and many of them decided to exit risk assets like cryptocurrency.
Michael Rinko, the venture associate of AscendEx, in one of his statement, said, “The Fed continues to hike, and equities and crypto are going down with it.”
Are Cryptocurrencies Still Worth It?
The answer is yes. But it cannot be that short. Let’s take a deeper dive into some reasons we believe there couldn’t be a better time to invest in cryptocurrencies than now.
#1: You can always buy a wide range of cryptocurrencies
One of the great things about investing in cryptocurrencies is that you can buy a wide range of different types. Bitcoin might be the most popular cryptocurrency, but it’s not necessarily the best one for you. There are other currencies out there that have different advantages and disadvantages and maybe more suitable depending on your particular goals.
So if Bitcoin or some coins you like are not having a good time now, you can diversify your portfolio and invest in some other coins. If you use some exchange platforms like Coinbase, eToro, BitPanda, and Anycoin Direct, you will see several cryptocurrencies you can choose from. You will definitely be surprised at how great an investment these altcoins could also be.
#2: You can buy plenty of less-popular cryptocurrencies
If you want to diversify your cryptocurrency portfolio, there are plenty of options. Though they’re less well known than Bitcoin, Ethereum and Litecoin are still popular choices among investors. Ripple—the third-largest currency by market cap—is also gaining popularity.
There are also many other cryptocurrencies that have been around for a while but haven’t received as much attention from mainstream consumers or investors. Examples include Stellar (XLM), Cardano (ADA), EOS (EOS), NEO (NEO), IOTA (MIOTA), and Dash (DASH).
With these lesser-known currencies, you can take advantage of their low prices before they become more popular over time.
#3: Wide adoption of cryptocurrencies
Cryptocurrencies are still worth it because they’re greatly increasing in adoption. Many countries and organizations are waking up to the possibilities locked up in cryptocurrencies and are joining the bandwagon already. There are now many companies accepting cryptocurrencies as a medium of payment. In fact, a recent report by Bitpay showed that over 100k businesses were accepting Bitcoin as payment for their products and services.
Banks and financial institutions also use cryptocurrencies. For example, Binance has recently launched its own digital currency trading platform called Binance DEX. It allows users to make purchases using the XRP token through a decentralized exchange (DEX). This is just one example of how cryptocurrencies have become more popular among banks than ever before!
Cryptocurrency is also commonly accepted by non-profits who want to raise funds without having to pay high fees associated with traditional methods like credit cards or PayPal. That way, they can pass those savings onto donors, which increases their likelihood of making donations based on these incentives alone.
#4: Most cryptocurrencies are down in price now; a good time to buy
Now is a good time if you’re looking to invest in cryptocurrencies. Cryptocurrency prices have dropped significantly since their peak in December. The value of Bitcoin alone fell from $54,000 to less than $30,000. And though some experts believe they could go even lower, others think they’ll rebound and rise again. In any case, there’s no harm in buying now, and if the price goes up instead of down later on? All the better!
#5: Real-world use cases of cryptocurrencies are increasing
You can buy things with crypto. You can use it to make payments. You can transfer money, and you can store value in it. And with the look of things, the real-world use cases of cryptocurrencies will likely increase as time goes on – and they’re not just limited to big players like Amazon or Walmart either!
In developing countries where banking infrastructure is scarce (or nonexistent), cryptocurrency provides access to a global financial system. That’s a game-changer for those who otherwise wouldn’t be able to participate in most international transactions due to lack of physical currency or bank accounts.
Similarly, countries with high inflation rates could benefit from using cryptos as a store of value instead of fiat currency which would likely lose its purchasing power over time due to inflationary pressures.
Because of the increase in crypto use casess, more people are already opening up their hearts to cryptocurrency. If you are thinking of joining the wagon so you won’t be left out of the innovations crypto brings, this is the right time to do so.