4 Absolute Reason Why You Need to Invest in Crypto In 2021

Are you taking advantage of the exploding crypto market? If not, you are not investing the right way. Although cryptocurrencies are known to be volatile, the returns are quite promising. Moreover, the market is always risky. But that doesn’t suggest you hold exploring. As we turn to 2021, this year will be more about cryptocurrency growth. In fact, by January 4, the top three cryptocurrency market valuation has been around $860 billion.

Meanwhile, if you haven’t added a handful of gains from the cryptocurrency market, this is a great time to invest in crypto. However, before you dive deeper, you need to absolutely figure out the nook and corner of the cryptocurrency market. So, here’s why you need to invest in crypto if you want to enhance your wealth.

Demand Growth

The first crypto that started in the market was Bitcoin. Launched a decade ago, the price currently stands at $34,346. It is a decentralized currency, and it’s here to stay and is worth investing in. All cryptocurrencies, including Bitcoin, have changed the way financial transactions are carried out. Also, a crypto owner has a significant amount of freedom over their finances and don’t need to rely on any bank. You should keep that in mind that investment here is not a trend but a reality that offers amazing returns.

Liquidity

Crypto liquidity is the reason why you really need to participate in this platform. When it comes to Bitcoin, there’s always a high demand. Also, in the current era, cryptocurrencies are highly accessible and not only reserved for big business houses. Buying and selling are quite easy with just a few touches to your phone. An investor can now avail of algorithm-based trading or limit orders. Therefore, liquidity is definitely high in this market.

Great Returns

When you are investing in this exchange, it’s all about making a profit. In fact, crypto is the best platform to make your money grow. Trading is simple, even if you are new to this stream. What is more interesting is that the potential returns are comparatively high than the traditional types of investment, like stocks and mutual funds.

No Mediators

Cryptocurrencies unlike other financial means are not under any organization. Unlike banking and other financial hubs where your money is at the mercy of other people, this is not the same here. In fact, if the bank is robbed or it gets bankrupt, all your investments are gone. When investing in crypto your money is going nowhere. Also, now you don’t have to rely on any institution for possible transfer or holding. The greatest benefit here is, you can avoid a large number of fees incurred on customers. Slowly cryptocurrencies are shaping the basis of a decentralized economy.

Final Wrap

Digital currencies are gaining popularity day by day. It has proven as a form of long-term investment due to its amazing returns. Cryptocurrency is slowly shaping the economy due to its high demand for a cashless and decentralized financial society.

How to trade Ethereum (ETH) on Koinbazar?

How to register your account:

The below-mentioned steps are to complete your account registration process,

Step 1: Visit the Koinbazar website.

Step 2: Select signup and enroll the details required.

Step 3: Once you complete, click “Create Account”. An activation mail will send it to your registered Email-ID.

Step 4: Open it and click the activation link. And your account is successfully created.

Steps to complete the KYC verification process:

The below-mentioned steps are to complete your KYC verification process,

Step 1: Sign in to your account and select Account —> Profile

Step 2: Under the KYC section you need to complete the following prospects.

i. Choose your required ID proof.

ii. Upload your frontside and backside ID Proof.

iii. Take a selfie of your face for KYC identification.

Step 3: Click Save. And your KYC verification process will be completed shortly.

After the procedures get complete, you can legally deposit your funds by connecting your bank details or external wallets to your koinbazar wallet. So, start trading ETH with INR safely with us and enjoy a hassle-free trading experience.

How to plan investments to meet your Financial Goals?

Planning investment needs a lot of planning. From research to budgeting to finding appropriate investment instruments, a lot of thought and permutations – combinations need to be factored in a plan that will help you reach your financial goals and eventually your dreams. Let’s start,

Step-by-step guide,

Reasons for financial planning

The first step when planning investments is to identify the underlying factors that drive you to do so. These inherent and important reasons why you need to create wealth can revolve around several factors, such as:

One needs to be clear as to why financial planning is needed and what the real motives are. Upon pondering, the below reasons will be apparent,

Need for Goals: We all want something out of life, Education, Car, house, vacation, etc these are the primary reasons and one should not only know but be sufficient driven to achieve them.

Retirement planning: This is becoming more and more critical with rising healthcare. You will atleast need 70% of the amount when your career is in full-swing for retirement, so you can maintain the same standard of living.

Beating Inflation: Inflation feeds off on savings. The key need for financial planning is to beat inflation because the costs are always going up.

Power of Compounding: The earlier you start the better because compounding needs a good head start of 10-15 years to show its magic in-terms of multiplying your money.

Your goals

This cannot be overstressed; we cannot make investments without certain outcomes in mind. That’s like firing without a target. Not only we need to have clear tangible goals like home, vacation etc we need to start early too.

Identify Risks

Risk capacity is directly linked to age. The younger you are the higher your risk tolerance. The portfolio should be accordingly set-up with enough equity to give you the edge and some steady investments too. The portfolio will keep on changing until retirement when the entire portfolio is sort of reverse.

Of course the above is a general rule of thumb but risk appetite should be assessed. Neither can we have 100% equity portfolios or all eggs in one basket.

Asset classes

There are different types of asset classes to matching varying investment needs. Investors should look at the right mixture of debt and equity in tandem with the risk profile.

Portfolio rebalancing is a great feature that must be used to protect from overexposure or under returns. This feature keeps your portfolio optimized for maximum returns.

What are your long-term goals?

Long-term goals again need a combination of different asset classes, so identifying them is crucial to the plan.

Index Funds

Index fund mimic the indices and is great for diversification. Index funds also need no monitoring as they move the way the market moves. They are passively managed and carry low to medium risk and they are ideal for long term goals.

Summary

Investment planning is a time-consuming but ultimately satisfying process. One has to sit with clear agenda to be financially independent and create wealth. Once that though is thorough ingrained in your system, rest is research and planning.

We have to start early for our financial plans to take off and give them enough time to grow. The Power of Compounding will only kick-in after you’ve had a steady start of 10-15 years. This is when the creation of wealth start or more importantly money starts working for you.

In an increasingly complex world, this is the best thing one can do to secure their future. You can get a family member to assist you with this project.