How to Invest in the Future of Finance with Cryptocurrencies

In this article, we will explore why cryptocurrencies are here to stay, why decentralization is the future of finance, and how you can invest in the best and safest cryptocurrencies and Crypto investments for long-term growth and passive income.

Hi awesome earth Fam! Lets win big and safe together! After 7 years of investing, big learnings, winning and loosing, i am back to share the most important things i discovered and insights about crypto and how to be a winner in the future of finance, Decentralised Money Vs. Corrupt CENTRAL Banking…

but please note that this is not financial advice and you should do your own research on all resources provided and find your best way before investing in any cryptocurrency.

Why Cryptocurrencies Are Here to Stay! 🙂

Cryptocurrencies have been around for more than a decade, and they have proven to be resilient, innovative, and adaptable. Despite the volatility, regulation, and competition, cryptocurrencies have grown exponentially in terms of market capitalization, adoption, and innovation.

Cryptocurrencies are digital assets that use cryptography systems to secure transactions and control the creation of new units. They are powered by blockchain technology, which is a distributed ledger that records and verifies transactions without the need for intermediaries. Blockchain technology enables decentralization, transparency, and immutability, which are some of the key advantages of cryptocurrencies over traditional banking systems.

According to CoinMarketCap, the total market capitalization of all cryptocurrencies was over $1.8 trillion as of December 1, 2023, up from less than $20 billion at the start of 2017. That’s a growth of 9,000% in less than seven years.

Cryptocurrencies have also gained mainstream recognition and acceptance, as more and more institutions, corporations, and governments embrace them as a form of payment, investment, and innovation. Some of the notable examples include:

  • PayPal, the leading online payment platform, announced in October 2020 that it would allow its users to buy, sell, and hold cryptocurrencies, as well as use them to shop at its 26 million merchants worldwide.
  • Tesla, the electric car maker, revealed in February 2021 that it had bought $1.5 billion worth of Bitcoin and that it would accept it as a form of payment for its products.
  • El Salvador, the Central American country, became the first nation to adopt Bitcoin as legal tender in September 2021, allowing its citizens to use it for everyday transactions and tax payments.
  • The World Economic Forum, the influential organization that hosts the annual Davos summit, launched the Global Future Council on Cryptocurrencies in October 2020, to explore the role of cryptocurrencies in shaping the future of the global economy.

These are just some of the examples that show how cryptocurrencies are becoming more integrated and influential in the world of finance, commerce, and society. Cryptocurrencies are not a fad or a bubble, but a paradigm shift that is here to stay and revolutionize the way we exchange value, store wealth, and access financial services.

Why Decentralization Is the Future of Finance

One of the main reasons why cryptocurrencies are here to stay is because they offer a decentralized alternative to the centralized and inefficient banking system that has dominated the world for centuries.

The traditional banking system is based on a hierarchical and intermediated structure, where a few powerful entities control the flow and supply of money, as well as the rules and regulations that govern it. This system is prone to corruption, manipulation, censorship, and exclusion, as well as systemic risks, such as inflation, deflation, and financial crises.

Cryptocurrencies, on the other hand, are based on a peer-to-peer and distributed structure, where anyone can participate and contribute to the network, as well as verify and validate transactions, without the need for intermediaries. This system is more democratic, transparent, and inclusive, as well as more resilient, secure, and scalable.

Decentralization is the future of finance, because it empowers individuals and communities to have more control and sovereignty over their money, as well as access to a wider range of financial services and opportunities, such as:

  • Remittances: Cryptocurrencies enable fast, cheap, and borderless transfers of money, especially for migrant workers and their families who rely on remittances as a source of income and support. According to the World Bank, the global average cost of sending remittances was 6.5% in the third quarter of 2020, while the cost of sending remittances using cryptocurrencies can be as low as 1% or even free.
  • Lending and borrowing: Cryptocurrencies enable peer-to-peer lending and borrowing, without the need for intermediaries, credit scores, or collateral. This allows anyone to access credit and earn interest, regardless of their location, identity, or financial status. According to DeFi Pulse, the total value locked in decentralized finance (DeFi) protocols, which offer various lending and borrowing services using cryptocurrencies, was over $100 billion as of December 1, 2023, up from less than $1 billion at the start of 2020. That’s a growth of 10,000% in less than two years.
  • Investing and trading: Cryptocurrencies enable anyone to invest and trade in a wide range of assets, such as stocks, commodities, derivatives, and even art and collectibles, without the need for intermediaries, brokers, or custodians. This allows anyone to access global markets and diversify their portfolio, as well as benefit from lower fees, higher liquidity, and faster execution. According to DappRadar, the total volume of decentralized exchanges (DEXs), which allow users to trade cryptocurrencies directly with each other, was over $200 billion in the last 30 days as of December 1, 2023, up from less than $10 billion in the same period in 2020. That’s a growth of 2,000% in less than a year.

These are just some of the examples that show how decentralization is the future of finance, because it democratizes and disrupts the existing financial system, and creates new possibilities and opportunities for individuals and communities around the world.

How to Invest in the Best and Safest Cryptocurrencies

If you are convinced that cryptocurrencies are here to stay and that decentralization is the future of finance, you might be wondering how to invest in the best and safest cryptocurrencies for long-term growth and passive income.

There are thousands of different cryptocurrencies in the market, each with its own features, functions, and potential. However, not all of them are worth investing in, as some of them are scams, clones, or simply irrelevant. Therefore, you need to do your own research and due diligence before investing in any cryptocurrency.

To help you get started, here are some of the criteria that you can use to evaluate and compare different cryptocurrencies:

  • Market capitalization: This is the total value of all the coins currently in circulation, and it reflects the size, popularity, and dominance of a cryptocurrency in the market. Generally, the higher the market capitalization, the more established, liquid, and stable a cryptocurrency is. However, market capitalization is not the only factor to consider, as some cryptocurrencies may have a high market capitalization but low growth potential, or vice versa. According to CoinMarketCap, the top 10 cryptocurrencies by market capitalization as of December 1, 2023, were: Bitcoin, Ethereum, Tether, Binance Coin, Cardano, Solana, XRP, Polkadot, USD Coin, and Avalanche.
  • Technology: This is the underlying mechanism and innovation that powers a cryptocurrency and enables its functionality and performance. Generally, the more advanced, scalable, and secure a technology is, the more competitive and sustainable a cryptocurrency is. However, technology is not the only factor to consider, as some cryptocurrencies may have a superior technology but low adoption, or vice versa. Some of the key aspects of technology to look for are: consensus algorithm, transaction speed, transaction cost, scalability, interoperability, privacy, and security.
  • Use case: This is the purpose and value proposition that a cryptocurrency offers to its users and the market. Generally, the more relevant, unique, and impactful a use case is, the more demand and growth potential a cryptocurrency has. However, use case is not the only factor to consider, as some cryptocurrencies may have a compelling use case but low execution, or vice versa. Some of the key aspects of use case to look for are: problem-solving, market size, user base, network effect, and competitive advantage.

Based on these criteria, you can narrow down your choices and select the cryptocurrencies that best suit your investment goals and risk appetite. You can also diversify your portfolio and allocate your funds across different categories of cryptocurrencies, such as:

  • Store of value: These are cryptocurrencies that aim to preserve and increase their value over time, and serve as a hedge against inflation and currency devaluation. The most prominent example of this category is Bitcoin, which is often referred to as digital gold, due to its limited supply, high demand, and global recognition.
  • Smart contract platform: These are cryptocurrencies that enable the creation and execution of smart contracts, which are self-enforcing agreements that run on the blockchain and automate various transactions and processes. The most prominent example of this category is Ethereum, which is the leading platform for DeFi, NFTs, and other decentralized applications.
  • Stablecoin: These are cryptocurrencies that are pegged to a fiat currency or another asset, and aim to maintain a stable and predictable value. The most prominent example of this category is Tether, which is backed by U.S. dollars and is widely used as a medium of exchange and a reserve asset in the crypto market.
  • Utility token: These are cryptocurrencies that provide access to a specific service or network, and are used to pay for fees, rewards, or governance. The most prominent example of this category is Binance Coin, which is the native token of Binance, the largest crypto exchange in the world, and is used to trade, stake,.

(1) 10 Best Cryptocurrencies Of December 2023 – Forbes Advisor.

Best Long-Term Crypto Investments – Forbes Advisor.

(3) 10 Safest Cryptocurrencies to Invest in 2022 – CoinJournal.

(6) These Are the 5 Safest Cryptocurrencies to Invest In | Money.

(7) Best Crypto Apps & Exchanges Of December 2023 – Forbes.

(8) Getty Images.

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