digital currency: Why people should invest in digital currencies this year, explains crypto expert

“Cryptocurrencies are the new gold rush,” according to Forensic & Crypto Expert Abhinav Soomaney, who adds that crypto coins and tokens giving mammoth returns enticing masses to invest in them and creating substantial demand. Cryptocurrency has come a long way and gained massive popularity since the first ever crypto coin- Bitcoin was established in 2009. Cryptocurrency which works on blockchain technology has a wide range of utility and application other than being just a get-rich lucrative scheme.Today’s youth are an online generation who are well versed with the importance of investing and are lured towards the rewarding crypto market — but Soomaney says that one needs to understand the application and use case of this new technology before investing their (fiat currencies) money. “Cryptocurrencies are purely digital. They have no physical form and only exist within the code of a blockchain. They are digitalised assets that can be transacted amongst each other without the need of a third-party intermediary such as banks,” says Soomaney. Here he shares what investment opportunities the digital currency has.

INVESTMENT OPPORTUNITY

Cryptocurrencies Vs Stock Markets
Cryptocurrency returns are much higher than stock markets. Cryptocurrency showed the top performing asset class of 2020-21 with 800% return whereas traditional stock markets showed returns of as low as 10% per year.

NFTs
Non-fungible tokens (NFTs) are unique digital tokens in the blockchain network. NFT markets are booming currently and all major celebrities and brand companies are interested in the same hence here are some tips for an easy NFT investing experience:

NFTs can be purchased from websites like opensea.io, solanart.io, Axie Marketplace and many others.

Ethereum is the most accepted crypto by NFT providers hence ETH purchase is a must which is available on cryptocurrency exchanges like Coindcx and Wazirx where one can purchase cryptocurrencies in exchange for their fiat currencies.

The value of an NFT is based on what someone is offering to pay for it. So, demand drives prices. Hence it is advised that one should do their own research before investing in such collectables.

ICOs

An ICO (Initial Coin Offering or Token Sale) is a type of fundraising where in exchange for money (Bitcoin, Ethereum, or fiat currency) investors receive tokens (coins). Projects that launch an ICO promise an investor that tokens will have value and can be used after the ICO.

People can track upcoming ICOs using ICO Drops which is an independent database/site created that segregates ICOs into three useful lists active ICOs, Upcoming ICOs, and Ended ICOs for everyone who is interested in ICOs and wants to stay current on the topic.

Cryptocurrency investing has many features like P2P trade, yield farming, staking and lending, and mining. One should do their own research before investing in tokens, coins or NFTs. The first cryptocurrency- Bitcoin solved the problem of double spending, similarly other coins have a variety of use cases. People should research the token and coins before considering investing in the same.

“The future holds a lot of surprises but a little glimpse is in the form of cryptocurrencies and blockchains along with Metaverse and NFTs. Many countries are considering turning cryptocurrencies into legal tender or starting a central bank digital currency (CBDCs). Crypto debit cards and ATMs are also upcoming and being widely used in many parts of the world. The next big change in the world will be led by blockchain technologies and cryptocurrencies, and NFTs, Metaverse will have a major role to play,” shares Soomaney.