Why Crypto is the new way for millennials to start Investing?
Cryptocurrency, which increases as much as 30 percent in a day. offers millennials a way to quickly build assets.
Today the concept of multiple sources of income has a great impact on the young generation and we have observed that since the pandemic, markets are giving massive returns, and everyone wants to be part of it.
Over the last couple of years, especially after the pandemic, it has been rapidly creating buzz among millennials that encouraged them to start investing in securities like stocks, mutual funds, etc. But one thing that attracts them more these days is "Cryptocurrency".
Here are a few simple reasons behind this:
Get rich quicker
Cryptos like Bitcoin, DogeCoin, Shiba Inu, etc. have given amazing returns in the past few years as compared to the stock market. Invest your money in crypto and watch your financial status rise. However, the risk is too high in the case of crypto but millennials prefer crypto thinking that in today's world, who wants to wait for years to double their wealth?
The new generation want the quick flow of cash and huge returns and cryptocurrency that increases 30 percent in a day; the short term is not an investment but holding your position for at least five years is when compounding works.
In cryptocurrency, holding for a few months can get returns that we don’t get in the stock market or any other asset class.
FOMO (Fear of missing out)
Cryptocurrency is one of the very hot topics these days. For example, three Friends sitting and discussing the rally in Shiba Inu made the fourth one miss out; the very same day the 4th invested in Shiba Inu, witnessed the graph and shared his experience with the other 3. One of the reasons behind millennials investing in crypto is because they don't want to miss out.
The belief
Many people believe that cryptocurrency will be the future of the "Medium of exchange". Now, many companies have started accepting crypto as a mode of payment. So, the belief that Cryptocurrency will boom shortly makes them invest in Crypto.
It’s decentralised
Nobody in the current times likes to be controlled or be under any restrictions. Why do Millennials love crypto? because it's decentralised. It is free from the control of banks and the government, leaving no restrictions. You can transfer bitcoin whenever you wish.
No interference from the regulators, buy and sell whenever and at any time you want. One can create their own currency and can buy and own your own digital currency.
Though it involves high-risk investing a large amount of money, one has to be aggressive and have a good risk appetite, even if the loss is high. Many cryptocurrencies are available at a low price but what is the use of digital currency has to be clear.
However, now is the right time to take advantage of investments by understanding the fundamentals of cryptocurrency and building a conviction for its future, and keeping a track of digital currency. The actual value is yet to be discovered by millennials.
Impact on India
The value and future of NFTS and crypto seem to be debated daily. But one fairly consistent tale about crypto is that Gen Z and Millennials are wild about investing in it. Business Insider declared that “Millennials’ love affair with crypto is burning red-hot right now.”
Because of decentralisation, Indian regulators are currently working on a legal framework regulating cryptocurrencies such as bitcoin as well as the Central Bank of India is developing its own blockchain resulting in its very own cryptocurrency that will be called “Lakshmi.”
Edited by Affirunisa Kankudti
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)