Why Cryptocurrency Trading is the Future of Investing?


Cryptocurrency has been advancing manifold in the market for the last few years. The price of the popular one, Bitcoin, was up 61% and Ethereum had climbed 409% at the brink of 2022. As and when Cryptocurrency rolls on every year, and is impacted by various economic shifts and microeconomic challenges; it is difficult to comment on the future of the cryptocurrency ecosystem. 

However, if we look at the statistical and factual data, it can be said that youngsters are enjoying the process of investing in cryptocurrency because of these below pointers:

  • Excitement
  • High Potential for Returns
  • Accessibility
  • Flexibility
  • Decentralization
  • Privacy

Here are some factual data to support our statement, let’s see;

  1. According to a 2021 survey conducted by Gemini (a cryptocurrency exchange), 14% of the U.S. adult population (approximately 21 million people) own cryptocurrency.
  2. The same survey found that 63% of cryptocurrency owners are under the age of 45, with the largest percentage (31%) falling between the ages of 25-34.
  3. Another study conducted by Statista revealed that in 2021, the substantial age group of cryptocurrency users in the U.S. was between 18-24, accounting for 27% of the users.
  4. A survey by the Financial Conduct Authority (FCA) in the UK found that in 2020, 78% of adults who had purchased cryptocurrency were under the age of 44.
  5. A report by Coinbase, another cryptocurrency exchange, found that the aggregate of new users under- 25 increased by 114% from 2019 to 2020.

This question can be viewed as debatable, so you will find this blog relevant. As per our research, we believe that cryptocurrency trading holds the future of investing. Here are the four main reasons why?

The Future of Finance: Four Reasons Why Cryptocurrency Will Play a Leading Role

Defi (The Dawning of Decentralized Finance)

There were originally 2 forms of control systems in a business i.e. centralized and decentralized. The centralized system is intuitive, easy to understand, and uses client/server architecture. Here, several nodes are connected to one server. 

The alternative, that is, decentralized systems has been gaining popularity. 

The main reason behind this is the hype for Bitcoin. Many cryptocurrency agencies are working on this system and some are adopting the change. 

In a decentralized system, the nodes are connected to the individual server and have the authority to make their own decision. The final verdict is only declared after acknowledging all the decisions.

A decentralized system works on transparency and a secured transaction server. DeFi can quickly gain traction in investing, trading, borrowing, and lending which can create a shift and evolve in today’s financial services.

Diverse valuation of Cryptocurrencies:

There is no built-in value for cryptocurrencies, however, it has other terminologies that hold some values like.

  • Payment Settlement

Cryptocurrency is a platform that builds trust in conducting transactions for the purchase of goods and services, with no third-party interference. It is a wonderful approach because it can reduce the chance of scams.

  • Asset Preservation

Since the supply of cryptocurrencies is limited, there seems to be a shortage of asset preservation or value shortage.

  • Pegged Cryptocurrencies

Crypto is connected to commodities and currency such as gold, oil, and USD respectively.

  • Privacy

Cryptocurrency understands that privacy matters when a transaction takes place. They make use of advanced tech where someone can anonymously complete their transactions.

  • Digitalize benefits

Digitalization has created an ecosystem wherein individuals with no access to traditional banking can easily participate in investments.

  • Digital Gold

Crypto and gold share the same weightage that money does. It is a viable kind of transaction.

The Receptiveness of more players is on the rise

Cryptocurrency has created its own credibility in the market, and as a result, is gaining infinitely more acceptability from both the public and private sectors. Both these sectors are the main leaders who understand the cryptocurrency financial market inside out. 

It has been thriving in a way that institutional investors, tech-focused businesses, and even central banks are pitching this financial part into their system. In the near future, a lot of positive changes will be made that include a shift in banking practices and economic impact.

Transactional and banking benefits

Cryptocurrency has come into the spotlight in line with acceptability and accessibility. It is only possible because of the cryptographic techniques and technology that keep evolving and advancing resulting in creating a better crypto ecosystem.

The benefits of this technology are as under:

  1. Cryptography takes care of individual privacy by allowing anonymity while transacting. This is because the system works on various cryptographic techniques. It focuses on data protection and ensures that information does not fall into the wrong hands.
  2. The security part is served smartly where transactions and internal attributes can’t be changed or forged. It uses advanced high-security networks to create a magnificent financial record.
  3. Gen Z needs the safest place where a large population can enjoy the benefits of accessibility and efficiency. The conventional bank is restrictive since it has a lot of formalities, which makes it infeasible for people to use the banking system. This is despite the fact that cryptocurrency provides a concrete solution. It becomes easy for people to trade in cryptocurrency even if they do not possess any traditional banking stamp.

These four pointers definitely make you aware of the significance of cryptocurrency and how it factors into the future of investing.

Decentralization is becoming popular because of rightful decision-making, dynamic values of cryptocurrency that add value to the system, support of both the public and private sector that would become a leading perspective in the long run, and last but not the least transactional and banking benefits.

It can be considered as a dream come true where people can think of a world, where everyone would be eligible for trading. It is with the entry of cryptocurrency that the hopes are accomplished.

Last Words,

We are even more confident that cryptocurrency trading would hold the future of investing. If you thoroughly go through this article, a lot of unanswered questions have now been answered. Cryptocurrency has set some pro ground rules that are flexible, and which provide accessibility and efficiency to all the users and investors.

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