Have you ever had an intense fear of missing out on a life-changing opportunity? From our experience, sometimes a bit of expert advice is all we need to take the leap. We sat down with Bankomia crypto experts to understand what made them invest in crypto, and why now might be the right moment for you to do the same.
Try to imagine a perfect combination of peace and adrenaline. A possibility to turn complicated strategies into effortless merits. A way to earn generous rewards in a short time by doing proper research.
Now, you might think there is no such thing. However, this is the way Bankomia crypto experts described their first experience with cryptocurrencies.
No doubt, making such bold statements usually evoke questions coming our way. Most of them we can divide into three categories:
- Why is everyone talking about this Bitcoin thing?
- Do people invest in cryptocurrencies, or is it just a scam?
- Should I invest, too?
If you fall under one of these categories – you’re about to receive your answers.
From THAT Bitcoin thing to THE Bitcoin thing
When we asked our team members what made them join the crypto community, it was the returns mostly. Earning money by doing financial research has made cryptocurrencies a massive topic in the last decade. People are attracted to this virtual money because it offers incredible returns in quite short periods.
Some finance experts speculate about the high risks coming with these kinds of transactions, and conceptually they are right. Any investment is a venture, but there’s no other alternative with such high ROI, like the most famous cryptocurrency Bitcoin.
Another fact why Bitcoin is popular – it doesn’t ask for significant initial funds. If we take a look at Bitcoin prices right now, many wouldn’t consider the deal. However, you don’t have to purchase a whole Bitcoin all at once (or any other coin for that matter). It’s enough to buy a fraction of a Bitcoin to become a part of the crypto community. Even holding a small piece of one Bitcoin would mean holding an asset with a higher value than any fiat coin.
A peaceful protest
Now that we have cleared the basics of Bitcoin investments, we’ll explain why people invest in cryptocurrencies.
Is it a choice of lifestyle, easy money, or a code to crack? Perhaps a bit of everything. Whatever the reason is, Bankomia pro’s call it a peaceful protest against the current monetary system.
We all live in the COVID-19 pandemic, and most definitely are about to witness another financial recession. Now, what would a smart person do in this situation?
Let’s take a look at the case of the United States. Their approach is to flood the system with US Dollars. According to the Federal Reserve, more money should mean higher stability. Unfortunately, this is not the smartest solution.
There is an infamous interview with Jerome Powell circulating the Internet. The Chair of the Federal Reserve of the United States of America says they injected massive amounts of money into the economy. When asked where it comes from, Powell says, “As a central bank, we can create money digitally.” The crypto community now likes to joke about the US money printer constantly making money.
Jokes aside, money without any supply limit means it is losing value. Any fiat money losing its value means high inflation rates in the foreseeable future. High inflation rates, in turn, can lead to a deep financial recession.
Those who know about cryptocurrencies understand that the Bitcoin supply is limited. In layman’s terms, it means that the network’s quantity will grow only to 21 million Bitcoins and not more. Thus, their coins cannot lose value as it eventually will happen with the infinite US Dollar, for example.
The Federal Reserve might have done cryptocurrencies a considerable favor by making it rain. Perhaps you heard about President Trump signing the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This Act provides a cash payment of up to $1,200 to the American nation as a Coronavirus relief payment.
Knowing this, are you still wavering about investing in cryptocurrencies?
Money that belongs to you
We have come to the last and most important question – should you invest in cryptocurrencies? For Bankomia crypto users, the answer comes easily.
Nowadays, we are used to having access to our money 24/7 in our bank accounts. Now, what if we told you that this money doesn’t technically belong to you? In reality, your bank has a liability to pay you back your money whenever you need it.
With cryptocurrencies, it is different. As our team members say, with crypto, you alone are in charge of your coins, and no one can take them away from you. Even harder to lose if you store them in a secure wallet.
There are two types of wallets available on the market – software, and hardware. Bankomia, for example, offers a software wallet that you can access online 24/7. These kinds of crypto storages are very convenient for instant transactions. However, be sure to consider all options and choose the most suitable wallet for your needs.
One of the needs might be to transact fast. With crypto transactions, there’s no transfer limit, therefore no need to inform your bank branch in advance or fill the paperwork. The transaction fees are deficient and not based on the amount sent.
Here’s an excellent example. A Bitcoin transfer worth more than 1,000,000,000 USD (92,857.24 BTC) was sent from one address to another. The transaction fee – 3.93 USD, which is about 0.000000004% of the total sum. If we look at the traditional bank per-transaction fees, they can vary between 0.5% and 5%. In this case, the sender saved nearly 50 million in US Dollars.
In conclusion, there are so many options for using the blockchain and cryptocurrencies offer. As a technological solution, it’s always evolving and changing. In this regard, we’d like to share some final expert tips:
- Trust your gut feeling – do not invest in something you’re not 100% sure about or don’t understand well.
- Study the behind the scenes of the cryptos (who, what, why).
- Evaluate the technology and the opportunities it will create for you.
- Understand the reasons you are in for it.
- Try to forecast what might happen in the next years within the legislation, finance, politics sectors.
- Cryptocurrencies are easy – once you get the hang of them.