Cryptocurrency trading has many opportunities for traders who would like to invest in the short term as well as long term. The term ‘long term’ is quite relative when particularly talking about investments. Some consider a 1-year period to be long term while to others it is 5 years or more. There are several cryptocurrencies in the market currently and it may be quite hard for new investors to choose which among them is the best.
Bitcoin (BTC) is one of the most popular cryptocurrencies that you may want to consider if you want to invest 5 or more years. It was recently ranked top among its competitors like Ripple, Binance Coin, and Etherium. It has the largest profit potential since it can grow by several hundred dollars within hours. The reasons below explain why BTC is the king of cryptocurrency, and why you should consider it.
Since its creation back in 2009, Bitcoin has become a well-established brand, and currently, it is available in all exchanges. It is also the basis upon which all calculations, by which all investors in the market are guided, are made. Also, it is available worldwide and bitcoins can be sent from any part of the world without censorship from any bank or any international transaction fees. In contrast, BTC’s competitors lack cross-border transactions because they are not as popular.
2. Sound monetary policy
Among the features that endear BTC to investors is its sound and predictable monetary policy which can be easily verified by anybody. Investors can see the number of bitcoins that are in circulation, as well as see the new ones that have been created.
3. Better regulations
The rise of cryptocurrency has seen the introduction of regulations that help tackle crypto scams. These regulations have boosted coin prices and trading activities since they reduce market uncertainties, which then creates a healthy and safe crypto market. With its tight regulations, BTC has provided a better foundation for future investments.
4. Greater liquidity
In comparison to other cryptocurrencies, Bitcoin has greater liquidity which allows its users to retain most of its value when converting to other currencies such as the US dollar. In contrast, other peers in the crypto market lose value when exchanged to fiat currencies, and some cannot be exchanged at all.
Bitcoin has privacy protections that allow users to invest as well as hold bitcoins in their accounts without fear of been tracked by public authorities or other private merchants. The policies give investors the chance to separate their BTC accounts from their public profiles, which makes it difficult for others to figure out who the owners are.
6. No political interference
Bitcoin is not created or controlled by any state entity. It exists outside any political system making it immune to any political influence. Due to this independence, it is difficult for any government to freeze or seize Bitcoin units in case of retribution from the government or when in the course of criminal investigations.
While Bitcoin is a popular cryptocurrency with greater benefits above its peers, it has is a dark side too. One of the major threats it faces today is exposure to scams and fraud. Its popularity has attracted both investors and criminals alike who run black markets that threaten to ruin its reputation. Therefore, as you make the choice, beware of such threats, just to ensure that your investment is safe.