Whether you are an avid investor or someone who has never dealt with cryptocurrencies, you must have heard about Bitcoins. Bitcoins have gathered immense popularity in recent years and have become a household name. The highly-rewarding currency has piqued the curiosity of many investors.
The cryptocurrency market is comparatively new, and people do not have adequate information to invest in these assets. Many financial advisors are receiving queries from their clients regarding Bitcoins and other cryptocurrencies. Hence, Bitcoins for financial advisors offer an opportunity to educate their clients about its benefits and associated risk.
If you are an investor or a financial advisor, you must be wondering whether Bitcoins are a relevant investment opportunity in 2021. Let us discuss some of the reasons that make Bitcoins a rewarding financial investment.
1. High demand
Bitcoin demand is at an all-time high. Many major companies are accepting and backing these coins. Also, with an increase in awareness, numerous people are gravitating towards the crypto market.
The market is relatively new and is becoming popular every day. This has resulted in an ever-growing demand for Bitcoins in a highly volatile market.
Hence, there is an opportunity to earn massive gains. Also, Bitcoins for financial advisors can serve as a long-term investment option due to their high demand.
2. Liquidity
Bitcoin is one of the most liquid investment options. With the advancement in trading platforms, exchanges, and online brokerage, you can conveniently trade in these currencies.
You can convert them into government-issued fiat or gold at affordable rates. Also, if you are looking to minimize your portfolio risk by cashing out your Bitcoins quickly, you can convert them into Stablecoins. Hence, Bitcoins are highly liquid assets that can be used for short-term profit gains.
3. Convenient trading
Dealing in shares of a company requires you to hold certificates and licenses. You also need to go through a broker to trade in company securities.
Bitcoins offer you a convenient option for trading. All you need to do is purchase or sell cryptos on an exchange and put them in your wallet.
Also, trading in Bitcoins is quicker, unlike stock trading that may take days or weeks for settlement.
4. Diversification
Bitcoins for financial advisors serve as an opportunity for portfolio diversification. Bitcoins do not have any direct link to the stock market results and vice versa. Hence, you can easily diversify your investment to reduce your risk.
Based on your risk appetite, you can make a small investment in Bitcoin and enjoy risk-adjusted returns. The volatility in both, stock market and crypto market can be balanced with a diversified investment portfolio.
These are some reasons that make Bitcoins a rewarding investment for both short-term and long-term investments. However, Bitcoins are extremely volatile, with frequent price fluctuation. Hence, consulting your Bitcoin financial advisor is essential.
HeightZero LLC is a digital asset management platform that provides financial advisors with secure and compliant access to digital assets like Stablecoins and Cryptocurrencies like Bitcoin, Ethereum, Cardano, Litecoin, etc. To know more, visit https://heightzero.co/about.html.