10 Good Reasons to Invest in Crypto

By Kirk David Phillips, CPA, CMA, CFE, CBP

Cryptocurrency has emerged as a revolutionary force reshaping how we think about money, investments, and the future of digital transactions. If you've been on the fence about diving into the world of crypto, you're not alone. Many are curious but unsure about the benefits and risks involved.

Let’s demystify crypto and present 10 compelling reasons why investing now is a smart financial decision. First, it's essential to understand the basics of crypto to understand the value proposition of this new asset class. Of course, always keep in mind the importance of crypto risk and security to safeguard your investments.

What exactly is cryptocurrency and how does it work?

So, what is cryptocurrency and how does it work? At its core, crypto is a form of digital currency that uses cryptography for security. Unlike fiat currencies issued by governments (like the US dollar or the Euro), crypto operates on decentralized network. This blockchain technology is a distributed ledger maintained by multiple computers called peers or nodes. 

Decentralization means no single entity has control over the entire network, reducing the risk of manipulation and fraud. People who supply computing power or stake tokens get rewarded with native tokens for securing blockchain networks. Blockchains use cryptography to mathematically prove ownership and transfer of value.

Key Takeaway

Not all blockchains are the same. Bitcoin has the strongest security of any blockchain. Your goal is to understand how different blockchains work and their value proposition. Then you can understand how value accrues to native blockchain tokens and whether to invest.

What is cryptocurrency trading then?

Crypto trading is buying and selling crypto for short-term or long-term gains. Traders buy cryptocurrencies at a low price and sell them when the price goes up, just like trading stocks. The sun never sets on the crypto market which operates 24/7, making it unique among all markets.

Why is cryptocurrency a good investment?

So, why is cryptocurrency a good investment? Let's delve deeper into 10 reasons why you should invest in cryptocurrency:

 1. Market growth potential

The crypto market is still in its early stages. As adoption increases, the network effect creates an exponential value increase for growth and profit.

2. Multiple ways to monetize

There are many more ways to make money in crypto than traditional finance. For example, mining, staking, airdrops, yield farming, providing liquidity, lending and borrowing are some of the many ways.

3. Diversification benefits

Cryptocurrencies providing a diversification benefit to your investment portfolio.

4. Liquidity

Major cryptocurrencies are highly liquid assets making it easy to buy or sell them without significantly affecting their market price.

5. Accessibility

Investing in cryptocurrencies doesn't require a large capital outlay. You can start investing with small amounts making it accessible to a wide range of investors.

6. Decentralized finance (DeFi)

The rise of DeFi platforms offers new investment opportunities such as staking, yield farming and liquidity provisioning allowing investors to earn passive income.

7. Tokenization of real-world assets (RWA)

Multiple projects are tokenizing real-world assets like real estate, art, precious metals and so on. This will bring trillions of dollars on-chain and increase the value of crypto native assets as more use cases get created.

8. Wealth opportunity

Crypto is a once in a lifetime wealth creation opportunity with extraordinary returns over the long term. In 2025 the crypto market is about $3.5T dollars, which is a tiny fraction of traditional financial assets, real estate and gold.

9. Institutional adoption

Institutional investors like Strategy are buying massive amounts of Bitcoin for their treasuries, providing credibility and stability to the market. U.S. states like Wisconsin are also buying Bitcoin.

10. Higher yields

Even conservative strategies like stablecoin investing can produce returns four to five times higher than cash in a bank savings account.

What are the benefits that cryptocurrency provides?

Let's explore the advantages of cryptocurrency that make it an attractive investment option:

• High return potential - Cryptocurrencies like Bitcoin and Ethereum have historically provided significant returns compared to traditional assets. Early investors have seen exponential growth in their investments over relatively short periods.
• Decentralization - The decentralized nature reduces the risk of centralized control or manipulation. It also means two parties can transact directly without intermediaries much faster and cheaper than banks.
• Transparency and security - Generally, blockchain technology ensures all transactions are transparent and immutable. Once a transaction is recorded on the Bitcoin Blockchain, it cannot be altered. Not every blockchain has the same security proposition.
• Accessibility - Cryptocurrency markets are open 24/7, and anyone with an internet connection can participate. No limited banker’s hours here.
• Portfolio diversification - Adding crypto to an investment portfolio can help spread risk across different asset classes.
• Inflation hedge - Some investors consider Bitcoin as a hedge against inflation, much like gold. Since many cryptocurrencies have a capped supply, they are not subject to the same inflationary pressures as fiat currencies.
• Innovation and future potential - Investing in crypto is investing in the technology of the future especially as new use cases emerge. Blockchain applications are expanding into various industries like, finance, healthcare and supply chain.
• Empowerment - Cryptocurrency empowers individuals to have control over their own finances without relying on traditional banking systems.

Why do businesses go crypto?

Cryptocurrency isn't just for individual investors; businesses are increasingly exploring how to integrate crypto into their operations. So why do businesses go crypto?

• Expanding payment options - Accepting cryptocurrencies can attract a broader customer base including tech-savvy consumers.
• Lower transaction fees - Cryptocurrency transactions can reduce fees associated with traditional payment processors. Crypto fees are not based on transaction amount.
• Faster transactions - Crypto transaction times are seconds not days compared to traditional banking methods.
• Innovation and competitive advantage - Embracing cryptocurrency can position a business as forward-thinking and innovative.
• Invest treasury funds - Corporate treasuries can invest idle cash into Bitcoin and other crypto for long-term returns and as a hedge against inflation.

How does cryptocurrency benefit businesses?

Delving deeper into the benefits of cryptocurrency in business—companies can benefit with:

• Micropayments and new revenue streams - Crypto enables micropayments (fractions of a cent), which can unlock entirely new business models, such as pay-per-use services, tipping, or rewarding user-generated content.
• Fractional ownership of assets - Crypto and blockchain enable the tokenization of physical assets (real estate, art, luxury goods). Businesses can sell fractional ownership of high-value assets, making them accessible to a broader audience.
• Gamification of customer engagement - Businesses can gamify interactions with customers by offering reward tokens for completing challenges, sharing content, or participating in surveys. These tokens could be used to unlock discounts, exclusive products, or even real-world experiences.
• Paying international contractors - Businesses can pay contractors lighting fast and save transaction fees while saving their contractors currency conversion costs. A happy contractor is a productive contractor.
• Programmable money - The finance function can be reimagined with the automation of agreements, money flows, approvals and funds segregation via smart contracts. Money can literally be programmed to enforce outcomes or achieve “what if” scenarios.

How can cryptocurrency help small businesses?

Small businesses—in particular—can reap benefits from adopting cryptocurrency:

• No chargebacks - Crypto transactions are irreversible, reducing the risk of chargebacks that small businesses often face with credit card payments. This protects against fraud and lost revenue.
• Financial inclusion - Crypto provides access to financial services for small businesses in regions with less developed banking infrastructure.
• NFTs for unique products - Small businesses, especially in creative industries, can use NFTs (non-fungible tokens) to sell unique digital or physical products. For example, a local artist could sell digital art as NFTs or access to token gated content.
• Access to decentralized finance (DeFi) - Small businesses can use DeFi platforms to access loans or earn interest on crypto holdings. You can borrow on your own assets with no applications or paperwork.

Is buying crypto worth it?

You might be asking yourself—is buying crypto worth it? The answer largely depends on your investment goals and risk tolerance, but also ask yourself how you’d feel if you don’t invest in the opportunity of a lifetime. Time in the market is always better than timing the market, so don’t suffer from trying to figure everything out before investing the first dollar. Most people are going to miss $1.5MM Bitcoin by 2030.

Is it safe to invest in Bitcoin today?

Bitcoin is the godfather of crypto and the first crypto with over 50% total market cap domination making it a relatively safer option within the crypto market. As a result, Bitcoin is probably the least risky crypto asset. Always do your own research (DYOR) and only invest what you can afford to lose.

Key Takeaway

Depending on the blockchain, crypto transactions are nearly instantaneous. If an Ethereum (ETH) transaction takes 12 seconds (for one block confirmation) and an international bank transfer takes 3-5 days, then ETH is 36,000 times faster than banks on the high side. Cross- border friction and banking hours don’t exist in crypto.

Which crypto is best to invest now?

With thousands of cryptocurrencies available, deciding which crypto is best to invest now is an unanswerable question.

Key Takeaway

Which crypto is best to invest in now is like asking for a crystal ball. The best crypto for someone else may not be the best crypto for you, so the answer to this question is deeply personal and different for every single person. Everyone wants the answer to this holy grail question, but you are the one who has to answer it for yourself.

Here are some factors to consider nonetheless:

• Market capitalization - Coins like Bitcoin (BTC) and Ethereum (ETH) have dominant market caps for a reason. They are stalwarts in the ecosystem. Explore whether  buying Bitcoin is worth it.
• Technology and use case - Understand the technology behind the crypto and its real-world applications. Find out what the project is trying to solve and the unique value proposition.
• Development team and community - A strong team and active community can be indicators of a project's potential success. Look for the number of followers or users on X, Discord and so on. If you see 25K followers, for example, that’s probably a good sign.
• Narratives and trends - Projects with solid tech and value proposition may not be performing well because AI agents are the trending narrative, for example. Think about using short-term and long-term investing strategies.

Benjamin Graham, godfather of value investing famously said, “The essence of investment management is the management of risk not the management of returns.”

Investing in crypto isn’t about chasing profits it’s about stepping into a financial revolution that’s reshaping how we think about money, ownership, and value. Crypto is a new asset class and a once in a lifetime opportunity for wealth creation. If you are just getting started, you haven’t missed the boat. This isn’t a game for the unprepared. To thrive, you must prioritize and understand crypto risk and security, stay ahead of market trends, and always sync your investments with your personal and business goals.

Wondering where you can invest in crypto?

There are numerous cryptocurrency exchanges like Coinbase, Binance, and Kraken where you can invest in cryptocurrency. Many apps like Robinhood, PayPal and CashApp offer Bitcoin and other crypto purchases. To get started, you'll need to create an account, verify your identity, and link a payment method—usually a bank account or credit card.

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