As cryptocurrency has begun to attract broader attention from potential investors, centralized entities have reasserted their role within the ecosystem, helping to remove obstacles when it comes to the conversion between Bitcoin and other digital assets or fiat money, which in turn attracts new participants. The best way to buy Bitcoin depends on factors like your location, preferred payment methods, and security concerns. An exchange allows you to buy and sell crypto assets at the prevailing price or leave orders that are executed when the token reaches your desired price target.
Over the last few years, cryptocurrency has evolved from an obscure asset class to an extremely profitable investment that is held for the medium to long term. It offers numerous benefits to investors, including but not limited to transactional speed, inflation protection, diversification, and big rewards, so it doesn’t come as a surprise that adoption and positive sentiment are growing. 17% of Americans own cryptocurrency as of May, and roughly 25% of adults affirmed they’re likely to acquire cryptocurrency in the following months. In the United States, high-
income earners have an unequal or unfair amount of cryptocurrency, meaning that only 15% of the general public is invested.
Americans Invest In Cryptocurrency To Earn Passive Income
In today’s economy, when various factors are out of balance, passive income is of the essence because it provides a much-needed safety net, guaranteeing you have money coming even if you lose your job or have to deal with unplanned expenses. By diversifying your income streams through cryptocurrency, you reduce the risks associated with market fluctuations, which basically means you enjoy stability and resilience against all odds. Some platforms offer interest-bearing accounts for cryptocurrencies, and by depositing your Bitcoin into such an account, you can make extra money. Just be aware of lock-up periods.
Lending is yet another way to increase your returns. Deposit your Bitcoin onto a lending platform, whether centralized or decentralized, and enjoy a compensation rate that varies between 1-20% per year; you can collect the compensation for as long as you keep the digital assets in the lending protocol. There’s a peace of mind that comes with knowing your bills will be paid on time, even if you’re not actively working. With freedom of time comes freedom of choice, so you can do anything you want. ETFs make it much easier for everyday investors to get started with cryptocurrency, most of them delivering outsized gains.
Men Are More Likely To Own Cryptocurrency Than Their Female Counterparts
70% of cryptocurrency owners are men, which shows that the acceptance and use of DeFi aren’t equal for the two sexes. The reason there’s a gender gap in cryptocurrency investment is that women are more cautious and less prone to emotional reactions like the fear of missing out (FOMO), so there’s no question of a lack of technological skills. If you’re convinced that men are from Mars and women are from Venus, you could say that men are from Bitcoin and women are from Ethereum. When they do invest, women prefer long-term investments, like Ethereum, a decentralized, open-source, and distributed computer platform that enables smart contracts and dApps.
Millennials And Gen Zers Are More Open To Cryptocurrency
The dynamic development of the cryptocurrency market has caught the attention of younger investors, namely Millennials and Gen Zers, who are attracted to investing by the dissemination of financial information on social media and other online platforms. Many don’t yet invest due to constraints and the challenge of making ends meet. Younger generations are less likely to invest in stocks or mutual funds compared to their older counterparts as they prefer cryptocurrency and NFTs, owning at least one investment. The top goals for investing are having enough money for travelling, saving for a rainy day, and being able to retire comfortably.
Many young people share similar investing goals, such as not struggling to pay the bills, not living paycheck to paycheck, and not having to let go of the things that matter in life. Financial freedom is the most common goal in life. Getting a better understanding of cryptocurrency is critical to take advantage of its potential – it provides access to new markets, acting as a modern tool for growing wealth strategically and sustainably. Bitcoin’s permissionless peer-to-peer network eliminates intermediaries, allowing individuals to dictate transactions between one another.
Americans Use Various Resources About Investing In Cryptocurrency
Education lays a solid foundation for confident and competent trading, and those who invest in learning reap significant benefits. American investors leverage various resources to improve their knowledge and learn about financial topics, such as online learning materials and personal connections. Social media, for instance, has all kinds of advice for us to consume, but it can be detrimental to wealth, so instead of navigating the slew of recommendations, you should do your own research. Investors lean on the same sources for financial information as non-investors: family and friends. It’s not the worst type of advice to accept, but neither is it the best.
Wrapping It Up
The rise in cryptocurrency prices investors are currently witnessing is partly the outcome of growing adoption. In other words, the more people are interested in the cryptocurrency market, the fewer coins are available to buy, so the price goes up. As Donald Trump and Kamala Harris prepare to face off in the US presidential election, many are curious to know how it could impact Bitcoin, which needs more favorable laws. Trump promised to make America the crypto capital of the world, while Harris finally broke the silence, pledging to support the industry while protecting consumers.
All in all, cryptocurrency has the potential to be the future of finance, provided it’s correctly implemented, but only time will tell whether we’ve made the right decision. Blockchain and Bitcoin are closely connected but not the same, though both of them can be touted as significant innovations, and it’s interesting to see how they’ll evolve in the following decade. The path forward is still full of risks, so new solutions must be developed to address the long-standing issues.
