5 Reasons to Invest in Cryptocurrency.

by Chinwekene Daniel Umeaka

Before now, when people asked me why I wasn’t investing in cryptocurrency, I simply gave vague responses that kind of waived off the conversation quickly. 

I didn’t do this because I was simply uninterested. I just hadn’t been fully convinced as to why I should invest. 

May 2021, I suddenly decided to dig deeper into this virtual world of finance and see what would suffice. So I took some money from my savings that I could afford to lose and with the help of a friend, I bought a coin that showed a lot of potential. 

Did I just wake up one day and decide to invest? Definitely not!

I spent two weeks prior doing my research and asking around. What are the odds? Which coins show potential? When do I buy and when do I sell? Why should I invest in the first place?

If you’re like me who wasn’t fully convinced on why cryptocurrency is for you, come with me on this journey and let’s deflate your doubt. 

Here are some reasons why you should invest in cryptocurrency:

1. Unlimited autonomy over your money:

The value of one’s assets is not bent on the activities of any form of mediator or intermediary.

Hence, this absence of a third character coupled with the decentralized style typical to crypto trading, offers people the liberty to enjoy absolute control over their finances. 

2. Your assets have an underlying growth potential: 

If you’re familiar with Nigerian music, you’d know this popular Burna boy lyric “Dangote still dey find money o, who I be wey I no go find money.” 

Burna boy sang a lot of people’s reality. We are all still looking for money regardless of what we already have. 

Even when we choose to save in a virtual currency, we do so also because we are aware of the growth potential of that currency. 

If I’m aware that a certain coin has acquired an increased growth rate overtime, I’d definitely want in on that action!

3. Crypto trading is transparent and safe:

Although the virtual space has a reputation of being a bit volatile from time to time, cryptocurrency trading has refused to be a part of this. Crypto trading is highly secure and safe due to its open-source blockchain technology which is a very transparent process in retaining records. With crypto trading, 2+2 is definitely = 4.

4. Good source of long term investment: 

While keeping in mind that the value of cryptocurrencies vary at fluctuating rates, they are still a wonderful source of investment in the long run. 

Anyone advising you to invest would always remind you to only invest money you wouldn’t need in a long while because they are a great choice of savings for the long run!

5. Great store of value: 

One of the favourite mantras of Nigerians on Twitter is “save in dollars”. As unrealistic as that may be for everyone, it still remains a reasonable advice for those who can afford to. 

I have been considering buying a certain cryptocurrency(USDT) that’ll enable me save in dollars because honestly, I am terrified at the rate the Nigerian naira has been devaluing. 

I am aware that this investment would protect my money from inflation and maintain its value while maybe even acquiring some growth along the way.

This is another exciting advantage cryptocurrencyinvestment offers, protection from inflationary pressures and maintenance of value. 

Regardless of the potential benefits a particular sector has to offer, it is no surprise that the Nigerian government always goes out of their way to make the executive decision to stump on it and crypto trading is not an exception. 

Earlier this year, on February 5th, The Central Bank of Nigeria released an order that banned all Nigerian financial institutions from engaging in crypto transactions of any form. 

Was this a foolish decision? Owing to the fact that Nigeria is Africa’s largest crypto market, I’d say definitely! With a capital D!

Even with this stumbling block, Chainalysis (a cryptocurrency investigation software) revealed that in March of 2021, a whooping $132 million worth of cryptocurrency were sent from Nigeria alone and this was higher than in February by 17%.

This tells only one tale; the cryptocurrency market in Nigeria is thriving regardless of what measures the Nigerian government take to sink it. 

Do not let the irrational actions of the government deter you from the light at the end of this virtual tunnel with a potential to shine super bright!

Let’s keep in mind that like the succulent inside of a pineapple and it’s spiny peel-coating, there are disadvantages to everything that is good. Cryptocurrency investment’s downside is that it fluctuates per second and at varying rates. I could snap my finger and I would have lost a few thousands of naira, maybe more.

But the upsides to crypto trading are worth it, so why not?

About the Author

Chinwekene Daniel Umeaka is a young, dynamic and well-seasoned writer whose work is making the world a better place one sentence at a time. She’s also a psychology student at the University of Lagos, Nigeria who hopes to work with the mentally and physically challenged as a clinical health psychologist.

Chinwekene’s favorite mantra is “Always stay hydrated and moisturized.”

More posts…

7 responses to “5 Reasons to Invest in Cryptocurrency.”

  1. Thank you for this Chinwe. You shared very solid reasons here. I’ve still yet to do my research on crypto though. Hopefully this will inspire me to look into it. Good job!

Leave a Reply

You have to agree to the comment policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

error: Alert: Content is protected !!