The cryptocurrency market is as revolutionary as it is liberating. Users all over the world have finally discovered a transparent market that empowers the individual, giving full power to everyone involved.
Due to the benefits of this new market, people choose to buy bitcoin both as an investment and a form of money. In due time, more coins rise to the top, solving global problems that have long limited our financial potential, like inflation, centralized authority, and other issues.
And this is exactly why we wrote this article. Over the next few chapters, we discuss the biggest benefits of the crypto markets in contrast to existing investment opportunities, and why everyone should explore its potential as we cruise through the third bull market in its history. Let’s get started!
One of the biggest benefits of the cryptocurrency market is its 24/7 operation. In contrast to the stock market, which only operates at certain times per day, and on certain days out of the week, this offers people from all over the world, easy access and equal opportunities.
Another reason why 24/7 crypto markets are important is their maturity. The total amount of time which Bitcoin has been operational since its inception in 2009 is nearly the same right now, as the stock market which started trading decades before it. Due to this, we saw Bitcoin and other cryptocurrencies being adopted, understood, and traded faster and at a larger scale than the stock market.
Easy access for everyone
Most investment markets have limitations for those interested to participate. Unequal investment has been an issue for decades, as the wealthiest individuals usually get access to opportunities not available to the wider public.
All this, however, changed with the inception of Bitcoin. Now, everyone with a smartphone and internet can participate in the market, and benefit at the same scale as everyone else.
This further expands into the development of Ethereum, which allowed every developer on a global scale to create projects to further improve the space. These projects, like startups, require capital for their operation, which is why they allow people to buy their coins at ICOs (initial coin offerings). While initially, the concept brought many scams with it, there is currently a more regulated space that allows users to buy trustworthy coins, at a pre-market price. The concept is known as IEOs and essentially stands for ICOs hosted and regulated by trustworthy exchanges.
Earn passive income
Any store of value is useful in and of itself. But what about SoVs that pay you to hold onto them? Then even real estate cannot compare with it. This is exactly what the crypto space is currently transitioning into since 2019, and the effects cannot be overstated.
So-called PoS, or Proof of Stake, is a consensus model that pays transaction fees to users that hold onto their coins, effectively offering passive income. These are known as staking rewards, and they have brought a brand new opportunity for all those looking to have their money work for them, while they continue to invest in what they believe in.
Staking is not the only option for passive income, however. Popular exchanges like Binance offer users the ability to store their funds in savings accounts, which offer a guaranteed payout that far exceeds that offered by the banking system, while also introducing the concept of yield farming. The latest is a riskier but much more rewarding form of staking and often helps people earn more money which they can then reinvest in the market.
Transparency through blockchain technology
Apart from the profit-making opportunities and the passive income elements, cryptocurrency also offers the benefit of transparency. This in turn helps the market become less manipulated, and users can track how and where funds are being used for.
This is possible through blockchain technology, a public ledger that anyone can access and track. This is true for Bitcoin, but also for all other cryptocurrencies that are traded on the market. One exception to this rule is privacy coins like Monero and ZCash, which use shielded blockchains to increase user privacy.
Finally, let’s briefly touch upon a word so often said but mostly misunderstood. Decentralization is the unique selling point of Bitcoin and the reason why so many praise it. Bitcoin is not controlled by any government or institution. No third party can close your account, confiscate your coins, or use information against you. The only person responsible is you, which is why it is important to educate yourself before entering the market.
Note that, even though many other cryptocurrencies claim to be decentralized, only Bitcoin is truly decentralized and large enough (in terms of network effect) to avoid manipulation from a single authority. Hence, this is the reason why the price of bitcoin is not just measured in terms of dollars, but also in the freedom it offers.
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