Getting into the crypto world
Like most people around me, I had lots of hesitations on crypto investment before taking my first step into the crypto world. These hesitations had held me back and significantly delayed the start of my crypto journey. In hindsight, these hesitations were mostly not correct, and I really wish I could have figured it out earlier. Below are the hesitations I had:
- Safety: Is it safe to put my money in those crypto exchanges? Media have repeatedly talked about crypto exchanges get hacked, and people losing all their funds..
- Already too late: All the financial experts from TV talk shows were telling me there was “huge bubbles“ with the valuation of crypto assets… Maybe it’s already too late to start now?
- Fees: For some reasons, I got an impressions that crypto transactions involve much higher fee than other investments.
After I finally had the courage to step out from my comfort zone and really understand how the crypto world works, I quickly realize all the above hesitations were either untrue, or they can be easily circumvented (what a costly mistake!):
- It’s safer than your bank: If you worry about safety of the crypto, just transfer your asset to your non-custodian wallet which can be easily downloaded from Google Play / App Stores. Once the coins are in your wallet, you are the only one in the world who have control on these coins. No one, not even the most powerful government, can take them from you! In this sense, crypto investments are even safer than your bank deposit (banks can, in theory, go bankrupt, and governments can freeze your asset).
- It’s just the beginning: In my opinion, the most exciting part of the crypto world has just begun. Just a few years ago, the uses of crypto assets are really limited. You can use it for payment or as an investment, and that’s about it. But the boom of Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs) since 2019 have completely changed the landscape of the crypto world. For the first time, the crypto world has what it takes to potentially revolutionize many aspects of our society, such as how you engage with other players in an online game, or how a businessman obtain financing, or how an artist sells his artworks. And the explorations has just begun in terms of how Blockchain can be used in every single aspects of our lives!
- The fee is lower than your stockbroker: When I need to transfer money from my bank accounts to my crypto accounts, I use the P2P platform of Binance. It doesn’t involve any fee and can be completed in just 5 minutes. And the trading commission that Binance charges on my crypto account is just 0.075%, which is lower than the “commission + stamp duty + exchange fee” that I’m paying for my stock investment.
People tend to be skeptical to things that they don’t have experience, and it’s much easier to easier to stay in comfort zone than exploring a new world. But it wouldn’t harm to start understand what is happening in the crypto world. You will definitely be amazed by the many new possibilities that blockchain has opened up for our future!