Cryptocurrencies are all the rage these days, especially as traders see stories circulating about people making tremendous profits from the tokens. The Winklevoss twins, famous for their involvement in Facebook, made $3 billion each by investing in Bitcoin. Michael Saylor and Matthew Rosak, two other early investors in the cryptocurrency, made $2.3 billion and $1.5 billion, respectively. Tales like that make it hard to resist the urge to invest a little money in the trend.
In 2010, a man from Jacksonville, Florida, made the first real-world purchase with Bitcoin. He bought 2 pizzas for 10,000 bitcoin. At the time, that was a fair price for 2 fast food pizzas. If this man skipped his dinner and kept his bitcoin, he’d be sitting on close to half a billion dollars worth of cryptocurrency today.
By historical standards, Bitcoin is a great investment. Bitcoin is the best performing asset of the past decade, appreciating over 31,000%. If you were to invest just $1,000 in Bitcoin ten years ago, you’d have hundreds of millions of dollars today. But can Bitcoin maintain this exponential growth? Potentially.
There is even bigger gainer than bitcoin - SHIBA. It gained 84431097.4% in one year!!!
So if you would invest just $1 in SHIBA at the beginning, you would earn $844310 in one year. This is insane!
But you must keep in mind that trading volatile cryptocurrencies has much more risk than traditional investments, but the payout could be life changing. So there is one important rule in crypto investing - never spend all yur money on crypto. If you want to invest in your future - spend max 5-10% of your savings.
Is Cryptocurrency Safe?
Bitcoin and other cryptocurrencies run on the blockchain. A blockchain is a distributed ledger technology powered by cryptocurrency miners. Bitcoin’s network has an estimated 10 to 20 times the processing power of Google’s servers, making it among the most secure networks in the world. To hack a blockchain, you’d have to simultaneously hack 51% of the miners on the network, making security breaches virtually impossible.
Cryptocurrency as a Long Term Investment
If you believe in blockchain technology, cryptocurrency is a great long-term investment. Bitcoin is seen as a store of value, and some people think Bitcoin can replace gold in the future. Ethereum, the 2nd largest cryptocurrency by market cap, also has huge growth potential as a long-term investment.
If Bitcoin is to cryptocurrency what the PC was to computing, then Ethereum would be the internet. Ethereum hosts decentralized apps (dapps) that let people use Ethereum for more complex financial transactions, such as loans, insurance and derivatives. Dapps can also be video games –– operating the game on Ethereum lets users buy and sell in-game items to each other using the blockchain. Before investing in a cryptocurrency for the long-term, be sure to understand what you’re investing in.
Where to Invest in Cryptocurrency
There are lots of options for where to invest in cryptocurrency. Binance is great option for beginners. It is the biggest and most trusted crypto exchange in the world.
You can deposit funds on this exchange through its website or on mobile app. Binance lets you buy crypto with a debit card, bank transfer or other cryptocurrencies. Depositing is easy and fast
Paying with credit card is a great option
Binance's advantages:
Low fees
Binance doesn't offer fee-free trading. However, its fees are low compared with even the best crypto exchanges that charge fees and commission. The highest spot trading fee you'll pay is 0.1%.
Earn up to 10% on holdings
Through staking, you can earn rewards on funds held in your Binance account. It's similar to an annual percentage yield on a savings account, but without the security you'd get from a bank. Reward amounts vary by currency between 0.5% and 10%.
Large crypto selection
Binance is one of the largest cryptocurrency platforms in the world. It gives users around the world access to more than 280 currencies. This includes 10 DeFi tokens, stablecoins, Bitcoins, and altcoins.
