Benefits of Investing in Cryptocurrency!
While investing in cryptocurrencies is not without risk, crypto trading has many advantages. Portfolio diversification, high staking returns, use as a means of payment are all things to consider. Focus today on 8 advantages of getting into digital currency trading!
1 – Diversify your portfolio
In the investment world, portfolio diversification should be a top priority. Thus, to an investment in real estate, it may be interesting to add shares or even cryptocurrencies. As part of an investment strategy, cryptocurrencies are often presented as an add-on investment .
Indeed, the extremely volatile nature of this type of investment would make it dangerous to own it in majority within a portfolio. It is often considered that crypto investment can represent 5 to 10% of total wealth. Similarly, if diversification must be considered across the entire portfolio, it is interesting to diversify your crypto investments. Many wallets today give pride of place to Bitcoin and Ethereum.
2 – Benefit from Innovative Technology
Investing in Bitcoin is above all investing in a new idea and philosophy. Today, blockchains like Ethereum, Solana or even Binance Smart Chain are particularly involved in the world of decentralized finance. A universe in which the hunt for intermediaries is now launched.
On layer 1 blockchains, a number of projects are also being developed. If we choose to isolate the example of LuckyBlock on the Binance Smart Chain, we see that the crypto universe is totally adapted to the launch and financing of new entrepreneurial projects. For the French cryptosphere, we can cite the Yes or No (YON), Winky verse (WKN) or Poken (PKN) projects.
3 – Obtain performance through staking
Most crypto projects include staking possibilities. This means that you can be paid in tokens if you agree to keep the token for a given period. The longer this period, the longer the reward will be. The yields offered sometimes exceed 100% annually.
On LuckyBlock, keeping the token in your wallet allows you to recover money each time a jackpot is won. For each jackpot paid, LuckyBlock pays 10% of it to the holders of the token. Reported over the year, this would be equivalent to an APY (Annual Percentage Yield) of approximately 25%.
4 – Use Crypto as a means of Payment
Formerly confined to the role of purely speculative assets, crypto currencies are increasingly developing as a credible means of payment. For most blockchains, the transaction processing capacity per second is much higher than on the Visa or Mastercard network. Moreover, the online payment giants are not mistaken and all give great credit to the use of cryptocurrency as a reliable means of payment. Paypal already offers some crypto payment features while Visa has recently teamed up with dozens of platforms to offer digital currency payment cards.
As part of LuckyBlock, the LBLOCK token, at the heart of the project, allows you to buy lottery tickets. Many projects use their tokens as a means of payment to buy goods or services on their ecosystems.
5 – Cryptos allow investing in deflationary projects
Unlike fiat money which is controlled by central banks and impacted by different monetary policies, most crypto projects offer a maximum cap. That is to say that the protocols provide for a maximum number of tokens in circulation . If we take the case of Bitcoin, the creation protocol foresees a number of 21 million Bitcoins placed on the market. And not one more.
For Ethereum, the EIP 1559 helped make the protocol deflationary. This means that there are fewer and fewer Ethereum tokens in circulation. This creates scarcity. If one correlates these deflationary crypto projects with the upcoming rise in demand, the overall trend in the market should go towards an increase in the overall marketcap. However, this does not mean that all projects will fly away. In the coming years, competition on crypto projects should be in full swing.
6 – Benefit from a right of scrutiny over company decisions
If the ownership of shares makes it possible to vote on certain decisions of the company in general meetings, more and more crypto projects are setting up what they call governance tokens . It is neither more nor less than the same principle. Thus, holders of governance tokens will be able to express their views on what guides the company's strategy. Whether short, medium or longer term.
The LuckyBlock platform also allows holders of LBLOCK tokens to make these kinds of decisions. Thus, for each jackpot won, the company donates 10% to charities. Token holders can then decide which projects they want to see rewarded. Governance tokens are therefore vectors of greater involvement.