These 4 myths are stopping you from investing in cryptocurrency right now
Even though the cryptocurrency world is crammed with opportunities to create wealth, a few persistent myths are stopping people from getting the benefits they deserve. Bitwala reveals how these stumbling blocks can be overcome so investors can unlock their financial freedom.
Why do people invest?
Many ambitious people are intimidated by the notion that investment is an activity for the elite. This couldn’t be further from the truth. Investing is one of the most successful ways for individuals to improve their circumstances, regardless of their financial status. What more, investing can be a deeply personal choice. All over the world people choose to make investments to become independent, to deepen their knowledge of the financial world and to grow their wealth over time.
Now that cryptocurrency is instantly available to anyone with an internet connection, millions of people are investing to play a role in the financial world of tomorrow. With so many different opportunities to invest, anyone can be a successful investor. Despite this, there are still a few unnecessary hangups that prevent investors from achieving their true financial potential.
Cryptocurrency is too complex
There’s no two ways about it: Cryptocurrency can feel complex. Perhaps the biggest obstacle for people getting into crypto is working how it all works. But, here at Bitwala, our goal is to put simplicity first.
The world of cryptocurrency is a lot to take on at first. That’s why we think investors should have access to a no-nonsense introduction to investing in cryptocurrency. We won’t overload you with techno-babble or the latest fads, we’ll just give you the tools you need to thrive on your own terms, in plain English.
As the cryptocurrency industry matures and becomes ever more inclusive, confusing tech speak and dense financial terminology are getting phased out. We know there’s still some work to do. But don’t worry, we’ve got your back. Bitwala has conjured up a handy A-Z of crypto investing for when things get confusing.
From setting up an account to our step-by-step guide to the world of cryptocurrency, our process is hassle-free. The only thing stopping you from investing in crypto is taking that crucial first step. Fortunately, brightening your financial future with Bitwala’s Bitcoin account only takes a few clicks.
I don’t know when to buy
First time investors are faced with a frightening statistic: 80% of people end up losing money on stocks. But the prospects aren’t as bleak as they sound. Most people don’t take a sensible approach to their first investments, often assuming that money is made by shovelling large amounts of money into one transaction. The world’s greatest investors often eschew the method of trying to “time the market,” instead opting for smaller and sustainable investments over a longer period. The good news is that the same applies for cryptocurrency.
Investing legend Warren Buffett has a tip for budding investors: It’s not about when you buy, it’s about how often. And that’s where Dollar cost averaging (DCA) comes in. DCA is one of the most reliable investment strategies of all time and can be tailored to suit any budget, from penny-pinchers to plutocrats.
DCA is extremely simple and perfect for investors looking to make their first crypto investment. All you have to do is decide how much you can afford to invest and then buy at regular intervals.
But that’s not all. 40% of millennials don’t trust the stock market, are afraid to lose money or don’t feel they have the knowledge to invest can all benefit from dollar-cost averaging. With DCA you have total control. You choose when, how much and how often you invest. And there’s one more thing: dollar-cost averaging can even mitigate against volatility, making it a perfect strategy for investing in cryptocurrency.
I shouldn’t invest when inflation is high and interest rates are low
Traditional currency feels safe. You can hold it in your hands and use it to buy real things in the real world. But the fact that you can put it in your wallet and spend it in the shops doesn’t actually mean that it’s the safest place for your savings. Traditional currencies suffer from inflation, meaning their purchasing power decreases over time. Unless you are placing your hard-earned currency in an interest-bearing account or investment strategy, it will be worth less in the future. It sounds unfair, right? Luckily, there’s a solution: Cryptocurrency!
Cryptocurrency holds an incredible advantage over traditional currency. Deflation is hardwired into its DNA. Cryptocurrencies such as Bitcoin have fixed supplies, meaning that only a certain amount can ever exist. This sets its apart from currencies such as the U.S. dollar, which can be printed on an ad hoc basis, meaning that its value will continue to wither over time.
In an economic climate where investment rates rarely rise above zero, investors are right to feel miserable about their prospects. But here’s where cryptocurrency can help. Despite its periodic issues with volatility, cryptocurrency has had great historic returns. Early cryptocurrency enthusiasts traded Bitcoin for as little as $0.0008 in 2010, compared to over $19,000 in December 2020. Cryptocurrency has its critics, but analysts are bullish about the industry’s future, with many speculating that Bitcoin’s price could quadruple in the near future. One thing’s for certain, while traditional savings methods are dead in the water, cryptocurrency is alive and kicking.
I want to invest but I am lazy
The good news: You aren’t alone. While some investors might leap at the chance to nose through stacks of financial reports and chart price patterns until the early hours, the reality is that most people would really rather not.
Thankfully, the investment world is a broad church and the benefits of investing aren’t for traders bashing out 90-hour weeks. In 2020, even the laziest investors can reap the rewards. That’s why Bitwala is launching a cryptocurrency savings plan that keeps investment commitments to a bare minimum.
Bitwala’s new savings plan is low maintenance, but puts you in control. Monthly savings plans will be available for both bitcoin and ether, all you have to do is select how much to invest and the day to kick start it all. Once a month, we’ll ping you a reminder to approve the savings transaction. This way you can keep your investments running in the background, while you focus on life.