Are you wondering whether Bitcoin can enhance portfolio returns? If so, here is how this digital money can improve portfolio returns.
Bitcoin can enhance portfolio returns - Here's why
Bitcoin has been on an exciting run since its inception. However, its early adopters have significantly benefited from investing in this digital money. On the other hand, managing risks in this highly volatile market is essential to protecting your investments when building a Bitcoin investment portfolio.
This virtual asset is undoubtedly capable of higher returns. So, here is why this digital currency can enhance your portfolio returns.
Bitcoin is a Hedge Against Inflation
Bitcoin is a decentralized currency whereby no government or bank can monitor its operations as it does with fiat currency. Therefore, this digital currency is a perfect hedge against the various inconveniences and regulations central banks offer.
Fiat currency suffers from inflation which happens from time to time because it does not have a limited supply, and the bank can print more money and discharge it to the public. Most people who use conventional currency as a store of value suffer from inflation since it eventually loses its value.
On the other hand, this digital currency does not suffer from inflation since it has a fixed supply whereby only 21 million Bitcoins will ever exist. Due to its limited supply, Bitcoin's demand increases, translating to an increase in value. Therefore, this electronic currency is a perfect hedge against inflation and a great store of value.
Low Barrier to Entry
The creation of this digital money also resulted in the introduction of exchange platforms that facilitated buying, selling, and trading of this digital money. Therefore, you can create an account with a genuine exchange, click here to help maximize your investments.
What's more, investing in this digital asset is quite affordable since if you cannot purchase a whole unit of this digital money, you can buy a fraction of their digital money.
More so, investing in this virtual asset does not require its users to possess various special skills. However, you only need access to the internet and a smartphone, and you can trade this digital asset. On the other hand, you should research thoroughly to understand what you are investing in and learn how to trade using various trading demos.
Nevertheless, this virtual currency is globally accessible to everyone and has better liquidity, enhancing your portfolio returns.
Bitcoin is Here to Stay
This virtual asset is one of the oldest cryptocurrencies, and despite going through some significant drawbacks and lows, it has managed to sustain the lows and rise again. Bitcoin has been available for the last thirteen years. And during this time, it has turned many people into millionaires while others have lost their funds. However, it's safe to say that this digital currency is a profitable investment and is here to stay.
Exchange platforms are recording a high number of users who are creating accounts so they can invest in this digital money. Many well-established businesses like Microsoft have incorporated this virtual asset into their payment system. Countries like El Salvador and the Central African Republic have made this digital currency a legal tender. Therefore, the increased adoption of this virtual asset has proven that it is here to stay. As such, it can enhance portfolio returns for an investor.
The Bottom Line
Generally, this digital currency can enhance portfolio returns greatly. Being a perfect hedge against inflation and offering no barriers to entry, this digital currency has proven to be a good investment. Nevertheless, take the time to understand how it works before investing your hard-earned money in it.
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: