Investing in financial markets is now a truly global affair. Modern technology has allowed us all to use some of our spare money to put into varying types of investment in order to make a good return. Of course, when you think about using your money like this traditional investment options like the world’s stock exchanges spring to mind. There is, however, a relatively new kid on the block that more and more international investors are putting their cash into – cryptocurrency.
When you look at the rise of the cryptocurrency sector over the last few years then it is clear to see why. There are now over 2,000 digital currencies to invest in with Bitcoin being the most popular. The entire market cap for cryptocurrencies is around $185 billion with Bitcoin’s alone being almost $100 billion! Although 2018 saw something of a pullback in cryptocurrency prices, 2019 has been much more positive and an upswing looks set to be in place once more.
This has seen more and more international investors move their money into this asset class. But what exactly is it about cryptocurrency that attracts them?
Potential to make big profits
Of course, any international investor will primarily look to make as much money as they can on an investment. Cryptocurrencies fit the bill here as the market is very volatile and can move a large amount in a short space of time. For savvy investors who know the market, this represents a chance to bag large profits on their original investment in a short time period. Compared to waiting for a share price to go up over months or even years, it gives a more exciting and faster way to see a return on your money.
More industry recognition and products to invest in
One thing that has drawn more international investors into cryptocurrency is the greater acceptance it now has from many mainstream banks and financial organisations globally. This has helped people around the world increase their trust in digital currency and to have the confidence to put their money into it.
The same can be said for the global media attention digital currency now has with many cryptocurrency headlines being published on a daily basis. That has brought it to more attention worldwide as a safe, wise asset to invest in. The other big step for cryptocurrency investment internationally is the greater range of products, like ETF’s, that investors can choose from.
Can invest in it globally
Another reason international investors have moved into cryptocurrency is how easy it is to do so from around the planet. As long as the country you are in allows this kind of investment, you can be involved with only a small amount of starting capital, a PC or smartphone and an internet connection. There is no need to be based in a financial capital or to work in a professional investment bank. Easy to use online currency exchanges or platforms where you can trade digital currency as a CFD give anyone, anywhere the chance to invest.
Crypto market is not open to interference
One of the best things about investing in digital currency is that the market is not centrally controlled by one government or organisation. This makes it very attractive for international investors who may prefer it to risking their money on markets which may be prone to outside interference. If you live in a country whose stock market you do not trust, for example, then you may find cryptocurrency a fairer way to earn some extra cash.
A safe haven?
One interesting factor when you look at international investors and cryptocurrency is that many seem to be using it as a safe haven investment.
This can be seen when Bitcoin prices move up as some mainstream markets look shakier. Cases such as the US-China trade war are prompting international investors to move money into a neutral currency like Bitcoin to avoid their assets being affected by world politics. While in the past commodities like gold held this position, it now seems that many global investors are turning to cryptocurrency instead.
Cryptocurrencies are an international affair
What is also obvious with this kind of 21st century currency is that it is simply a global industry in itself. Not being tied to one base paper currency or government allows all traders, wherever they are, to understand it and invest in it. If you have not yet looked into making digital currency part of your overall portfolio, then now might be the time to become involved. As the market looks set to rise again, getting in now could pave the way to some big gains.