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Investments are a great tool for advancing your financial stability. In times of uncertainty, when your only source of income comes to a dead-end, any investment you’ve previously made will definitely help you navigate the rough waters. And what’s wrong with having more than one stream of stable income? If anything, it would only enhance your living conditions and upgrade your lifestyle.
Who doesn’t want that, right?
If you are a salaried employee who entirely depends on your single source of income, you need to read this blog till the end to learn more about the best investments for employees.
A fixed monthly salary certainly sounds more stable than a new startup or business, which may or may not reap benefits. But have you ever thought, what if you lose your job due to unforeseeable circumstances? Or what if you had to quit your job for one or the other reason, and now you have no income coming in? If you had solely been dependent on your monthly salary, with significantly fewer savings, the chances are that any progress you’ve made on financial stability could come crashing down.
When the world came to a standstill in 2021, many people lost their jobs and had no other option to achieve financial stability. In such unforeseen circumstances, one should focus on viable investment options.
For starters, you can begin by taking a small portion of your savings and putting it into smaller investments that will ultimately benefit you in the long run. Let’s explore why investing in crypto can be the best investment option for salaried employees, especially after the Bitcoin halving event; the crypto market is expected to experience a potential bull run.
Which is the Best Investment Option?
There are many traditional investment methods, from deposits and mutual funds to provident funds and pensions. However, as the world has expressed its trust in the digital economy, various digital modes of payment systems have emerged, and people have considered that the best investment option you could make as a salaried employee is to invest in crypto.
Today, crypto has revolutionized the way we perceive digital asset class. With many use cases and various crypto projects emerging, it has become a household name. However, it’s not if you still think it’s too complex a technology to learn about.
Crypto is increasingly becoming the best investment option for investors and ordinary people (including salaried employees) as an asset class. Not only is crypto one of the best investments for salaried employees in the modern world, but it also has several other benefits that we will discuss below.
Also, WazirX has revolutionized traditional gifting by introducing ‘Crypto Gift Cards.’ Now, you can give your loved ones the gift of financial independence. Here’s a guide for you on how easily you can gift WazirX crypto gift cards.
Quick Introduction to Crypto
Crypto, based on blockchain technology, works as an independent decentralized digital currency that does not require the authority of financial intermediaries like banks. It is one of the best investment options for employees looking to diversify their portfolios and improve their incomes. Anyone can buy or sell crypto on reliable crypto exchange platforms. With no mediator between the buyer and seller and comparatively lower transaction costs, you can use crypto in any form. And your transactions will remain largely anonymous.
How to Invest in Crypto?
- Start small
Considering that you are a beginner at crypto investments, it is best to start small. Invest a small portion of your portfolio first, and as you learn the tricks of the trade and understand market conditions better, you can start investing more. An ideal amount to be allocated for crypto is about 3-6% of your portfolio.
Understand that, just like any other investment, cryptos are also subject to volatility. Many people make the mistake of blindly investing in crypto after they’ve heard stories about how much its value has rocketed. These very people lost huge amounts of money when the market eventually crashed. Unlike investing in gold or shares, this investment does not pay you back in dividends, interests, etc.
In addition, most countries are still developing regulations related to crypto. Hence, you should expect anything from favorable regulations to an outright ban. For all these reasons, it is ideal to start with smaller investments.
- Do your research and choose the type of crypto.
As a beginner, it is most likely that the only crypto you’ve heard about is Bitcoin; you need to know that there are several other currencies, too. Besides investing in Bitcoin, other prominent cryptos you can consider are Ethereum, Tether, Cardano, Polkadot, etc.
Before investing, you need to thoroughly research which type of crypto you’ll be investing in. You should also go through the whitepapers of each coin you are investing in to know what you can expect from investing in it.
- Choose the right platform.
The next most crucial step in your crypto investing journey is choosing the right platform or exchange. You can find exchanges offering fiat to crypto or crypto to fiat. The most prominent exchanges in the world are centralized, where the exchange platform acts as the intermediary. However, if you dont want an intermediary, you can choose decentralized exchanges.
Remember to do extensive research again when choosing an exchange. Some of the most important factors include its geographical location, the level of transaction fees, liquidity and volume, exchange interface, and security features.
Volume and liquidity can help you decide the platform’s credibility, while transaction fees can help you compare between the different exchanges. A user-friendly interface matters and security is of utmost concern since you do not want to lose out on all your money.
While you’re at it, research how the exchange will store your money. Many centralized exchanges are infamous for cyberattacks, so keep that in mind while making a decision.
If you frequently use your cryptos, a hot wallet operating on the cloud is the better option. If you’re storing money for a longer time, however, go for cold wallets. They are much more secure since they are physical and do not operate online. You can also choose from hardware wallets and paper wallets. To learn more about types of crypto wallets, click here.
Why Choose WazirX?
WazirX is the best and most trusted crypto exchange in India. It lets you trade various cryptos on different platforms and offers exceptional security features. Their platform interface is not only excellent but also allows faster transactions. Now that you’ve got all the information you need on the best investment options, you are all set to start investing in crypto.
Frequently Asked Questions
Who Invented Cryptocurrency?
Satoshi Nakamoto invented cryptocurrencies and the technology that makes them function in 2009. The presumed pseudonymous individual or persons who invented Bitcoin used this identity. In addition, Nakamoto created the first blockchain database. Even though many people have claimed to be Satoshi Nakamoto, the person's identity remains unknown.
How Safe Are Cryptocurrencies?
Cryptocurrencies can be safe, but your crypto wallets can be hacked if proper security steps are not performed. There are also dangers and uncertainties associated with investments, and we cannot declare any virtual currency investment risk-free. Buying and selling cryptocurrencies does not have to be dangerous if the trader is well-versed in the market and treats his coins with care.
Are Cryptocurrencies A Good Investment?
Cryptocurrency has the potential to make you extremely wealthy, and the potential to cause you to lose your money. Crypto assets, like any other investment, come with many risks and potential rewards. Fundamentally, cryptocurrency is an excellent investment, particularly if you want to gain direct exposure to the demand for digital currency.
Is Mining Cryptocurrency Legal?
Cryptocurrency mining can be time-consuming, expensive, and sporadically profitable. Mining has an appeal for many cryptocurrency enthusiasts as miners are paid directly with crypto tokens for their efforts. The legality of cryptocurrency mining is dependent on where you live. In India, there is no restriction on crypto mining.
What Is The Safest Cryptocurrency To Invest In?
Bitcoin has had the highest market capitalization, has been around the longest, has the most experienced development team, and has enormous network impact and brand recognition. As a result, while trading cryptocurrencies, the rate of return on Bitcoin is commonly used as a benchmark. However, the risks associated with cryptocurrencies remain, and the safest cryptocurrency for you depends on your analysis.
Is Pi Cryptocurrency Safe?
Pi Network captured the crypto community’s interest even before it officially debuted. Its innovative mobile mining approach and user-friendly design simplify crypto adoption for a broader audience. Some users see this as a chance to get engaged in the crypto from the beginning and profit in the future, similar to how early Bitcoin adopters made huge profits by mining and keeping the coin. Other users have compared Pi to a worthless multi-level marketing (MLM) scheme.
What Are The Best Cryptocurrencies To Invest In?
The best cryptocurrencies to invest in would be the ones you study and analyze in detail. Some of the most popular cryptocurrencies include Bitcoin, Ethereum, and many altcoins such as Tron, Ripple, Litecoin, etc.
How To Invest In Cryptocurrency?
There are two ways of investing in cryptocurrency, mining and via exchanges. Cryptocurrency mining is considered the procedure of verifying and adding transactions to the blockchain public ledger. Another option is via cryptocurrency exchanges. Exchanges generate money by collecting transaction fees, but there are alternative websites where you can interact directly with other users who want to trade cryptocurrencies.
How Cryptocurrency Works?
Cryptocurrencies use cryptography technology to keep transactions and their units (tokens) secure. Cryptocurrency works via a technology called the blockchain. A blockchain is a decentralized technology that handles and records transactions across numerous computers. The security of this technology is part of its value.
Is Bitcoin And Cryptocurrency The Same Thing?
Bitcoin is a cryptocurrency that was designed to facilitate cross-border transactions, eliminate government control over transactions, and streamline the entire process without third-party intermediaries. The absence of intermediaries has resulted in a significant reduction in transaction costs. Satoshi Nakamoto, the creator of Bitcoin, created the first cryptocurrency in 2008. It began as open-source software for money transfers. Since then, plenty of cryptocurrencies have emerged, with some focusing on specific fields.
Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.
