There are many reasons why people choose to invest in cryptocurrency. Chief among them, to make money. But what are the other motivating factors that determine why people might make a certain crypto purchase? Here we explore the main reasons why people purchase cryptocurrencies and how that may affect your own crypto purchase decisions.
Investing In The Future
Many factors go into a cryptocurrency’s ability to push beyond the norm. One such factor is its functionality and technology around it. Is a cryptocurrency like Ethereum in that it supports an entire marketplace of NFTs (among other things)? Or perhaps the crypto functionality is helping with advancements in the healthcare system. Whatever the innovative backdrop is to a particular coin might be the reason why people are backing it. People want to be part of the next great wave in anything, and cryptocurrencies allow folks to not only take part in technological and financial history, but to also have a hand in shaping how it looks.
The Ability To Safeguard Your Investments
If safety is your prerogative, cryptocurrencies provide a unique way to safeguard your investment with encryption, two-factor identifications, and a highly secure system of cold-wallet storage. While there are security risks with crypto, most wallets with cryptographic keys stored offline are going to be pretty hard to hack, so your biggest security issue then becomes yourself. If you transfer money into a wallet and secure that wallet with a cryptographic key, there’s no way to access that wallet’s funds if you lose the key combination. Thus, it’s imperative to store your passwords, keys, and wallet information in a secure place offline, but not in a place you’ll forget about. For this reason, it’s also a good idea to create a hard-copy back-up of the information as well.
An Option To Combat Inflation
For folks who fear inflation or who fear the future valuation of the dollar or government-backed currencies declining to an unprecedented level, cryptocurrency offers an alternative that’s not as influenced by trust in the traditional markets. While specific economies have their ups and downs, crypto is decentralized and largely unaffected by the traditional forms of market manipulation. With that said, crypto is subject to a variety of other factors—especially skepticism of its sustainability—that make it a very volatile investment option. However, given that it’s operating largely on a system separate from the traditional financial forms, there is the feeling that it can potentially offset any traditional market losses, making crypto an attractive option to potential buyers.
Wealth-building
As mentioned earlier and one the primary—if not the primary—drive behind why people buy cryptocurrency, wealth-building and making money sits on top of the cake. Like any investment, the idea is for it to make money over time, and that’s exactly what the expectation is for those who buy crypto. Yes, some are purchasing crypto to use as a tool to purchase goods and services around the globe, but the vast majority of those who engage in the purchasing of cryptocurrency do so with the intent of profiting off of the coin. Instead of investing in stocks or mutual funds, specific cryptocurrency investments are becoming ways in which people are profiting faster and in larger quantities.
Whether you’re looking to invest long term or use cryptocurrency for everyday purchases, one crypto you should explore is EthereumMax.
Starting Your Portfolio With EthereumMax
EthereumMax is a decentralized cryptocurrency that gives holders control of their digital assets without the need for an intermediary. EMAX Tokenomics remain 0% tax on buys, with a 9% tax on sells and transfers. From the 9% tax, 3% will remain in the treasury and 6% will manually be burned every other week. Check out https://ethereummax.org for more information on why EthereumMax is quickly becoming one of the most robust tokens within the crypto ecosystem and set up your eMax wallet to start your cryptocurrency journey today.