Cryptocurrency is perfect for millennials. Here’s why

We all know that a well-known characteristic of millennials wants everything on their phones. Everything from the morning news to grocery shopping and dinner planning is at their screens, and it only requires a click on a screen.

Digital and branchless banks renew traditional bank structures, and payments occur momentarily through digital payments.

Millennials are also embracing digital currency lately. According to a recent survey, 66% of millennials have more trust in cryptocurrency than the stock market.

Nearly everyone knows that cryptocurrency is a digital asset that can be used as a means of exchange and a store of value.

The youth are willing to do all things digital. When it comes to investments, they prefer doing things online or over an app to filling up lengthy paperwork.

Cryptocurrency arose a decade ago as a digital currency, an alternative to our current financial system. It indicates that cryptos can be bought, sold, exchanged, or stored only digitally. Furthermore, cryptocurrency has now established itself as a new asset class in the world of investments.

The cryptocurrency market operates 24/7 and 365 days a year. Therefore, you do not have to wait for business hours in order to trade or invest in the asset.

Based on those factors, cryptocurrency as an asset class is perfect for millennials and their lifestyle. There are some reasons why millennials need to invest in cryptocurrencies, which I’ll name in the following article.

Millennials want investments that yield high returns in a short period

Millennials seek investments that yield high returns in a shorter time. There are not many assets that generate high returns swiftly. However, cryptocurrency is an exception.

Since 2009, cryptocurrency has increased in value and has managed to beat gold as the top asset class. Bitcoin, which is the largest cryptocurrency in the world, has mostly outperformed the market.

Over the past year alone, Bitcoin has boosted by 400%, while Ethereum, the world’s second-biggest cryptocurrency, has climbed by 1,000%. For example, if you had invested x  in Bitcoins at the beginning of 2020, your holdings now would be 4x.

Moreover, Reliance Industries Ltd, a renowned stock, recovered 30.34% in the last year.

Cryptocurrency is highly volatile, so the risk and returns are relatively high

Another essential thing to mention is that cryptocurrency is highly volatile. The fact that sometimes its 30-day gains or losses can surpass 100% is a testament to that. That means the risk and returns are relatively high. However, they make a large addition to a millennial’s retirement portfolio.

Millennials are a generation who do not have access to a pension from their employers. Therefore, they need to look for investments that can yield returns for a comfortable retirement.

Furthermore, they are a young generation, and they can afford to take risks. Besides, they have more time to try new assets and gain experience in investing.

Cryptocurrency is not correlated to traditional asset classes. This means it can make an alternative investment for millennials over the long term since they are likely to remain strong and pull through any financial crisis that may happen in the future.

How can we make investment safe

However, the question is, how can we make our cryptocurrency investment safe? Investing in cryptocurrency is no longer technical. Many cryptocurrency platforms or exchanges allow the public to invest in crypto.

However, Simplicity, security, and accessibility is what you may need to look for in an exchange before investing.

Undoubtedly, the exchange platforms are doing their best to improve security. However, the users also need to do their research before investing.

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