8 Reasons You Should Consider Investing in Cryptocurrency (Even If You’re New to It)

Finance is changing fast. Stocks and bonds still matter, but digital assets—cryptocurrencies—are reshaping how people store and move money. For some, that feels risky; for others, it’s like discovering the internet in its early days.

Cryptocurrency runs on blockchain, a public digital ledger that records transactions transparently without banks. It’s a system built on code and community rather than central approval.

Why does it matter now? Inflation erodes savings, banks restrict access, and people want alternatives. Crypto offers a faster, borderless system open to anyone with an internet connection.

If you’re curious about how to buy cryptocurrency, start small. Begin with an amount you can afford to lose, learn how wallets and exchanges work, and focus on security first. Informed steps beat impulse moves every time.

This article looks at ten solid reasons people invest in crypto—and how digital assets can complement, not replace, traditional investments. Let’s start with growth, the biggest driver of attention.

Reason 1: High Growth Potential

Crypto has delivered outsized long-term gains compared with many traditional assets, though with sharper swings. Bitcoin (BTC), the market’s bellwether, has repeatedly posted stronger multi-year compound annual growth rates (CAGR—average yearly growth over a period) than gold or the S&P 500 across most look-back windows, according to aggregated macro charts tracking BTC versus traditional assets. Think of it like a young, fast-growing company compared with a mature blue chip—higher upside, higher volatility.

Recent milestones support why investors pay attention. On January 10, 2024, U.S. regulators approved spot Bitcoin exchange-traded products (ETPs), opening a familiar ETF wrapper that many retirement and brokerage accounts can access. This broadened distribution supported new demand and helped propel BTC to fresh all-time highs above $69,000 in early 2024. Access matters; when buying becomes simpler, participation often follows.

A practical mental model: treat crypto as a small “moonshot” sleeve within a diversified portfolio rather than the core holding. Start with what you can afford to hold through drawdowns. And anchor expectations with a timeless rule: past performance doesn’t guarantee future results. Volatile assets can drop quickly, and previous gains don’t imply continued outperformance. Proceed with position sizing, not bravado.

Reason 2: Diversification of Investment Portfolio

Crypto can diversify a portfolio because its price doesn’t always move in lockstep with stocks or bonds. In plain terms, correlation measures how two assets move together; a lower correlation means better diversification potential. Recent research notes that while correlations spiked during 2022–2023’s rate-shock period, they’ve been relatively weak again more recently—supporting the idea that crypto can play a diversifying role alongside equities and fixed income.

Large institutions echo this mixed-but-useful picture. State Street’s November 2024 analysis shows historical Bitcoin correlations around ~0.4 with the S&P 500 and even lower versus U.S. bonds and real estate—levels consistent with a partial diversifier, not a clone of traditional risk. Meanwhile, global central-bank research finds limited spillovers from crypto stress into mainstream markets, implying that crypto shocks haven’t consistently transmitted to core assets. Translation: correlations change, but they’re not permanently “high.”

What to do with this? Use crypto as a small sleeve to tilt risk-return, not the portfolio’s engine. For example, a 1–5% allocation can test diversification benefits while capping downside if volatility hits. Expect correlation to rise at times—especially during broad market stress—and plan sizing accordingly. Diversification helps; it doesn’t guarantee gains or prevent losses.

Reason 3: Hedge Against Inflation and Currency Risk

Scarcity and dollar access make parts of crypto a practical hedge against inflation and shaky currencies—though results vary by asset and period. Bitcoin’s code enforces a hard supply limit of 21 million and cuts new issuance roughly every four years via “halvings,” creating a transparent scarcity schedule unlike fiat money, whose supply can expand. This rule-based issuance is widely documented and helps explain why some investors treat BTC like “digital gold.”

Evidence on inflation hedging is mixed but meaningful. Several recent empirical studies find Bitcoin returns often respond positively to inflation shocks—when reported inflation exceeds forecasts—suggesting defensive characteristics during surprise price spikes. Still, the effect isn’t universal across all time frames, so it should be viewed as a partial hedge, not a guaranteed one.

In many inflation-hit economies, the hedge is practical rather than theoretical. Households use crypto—especially dollar-pegged stablecoins like USDT—to escape local currency devaluation and to move value across borders. Reports in 2024–2025 highlight strong adoption in Argentina amid triple-digit inflation and elevated stablecoin use in Turkey and across Latin America, reflecting demand for dollar exposure and payment rails outside bank hours. That’s a currency hedge in action.

Bottom line: treat BTC as a scarce, programmatic asset that can sometimes offset inflation shocks, and view stablecoins as a straightforward tool to mitigate local currency risk. Size positions cautiously; hedges can break when markets correlate.

Reason 4: Access & Financial Inclusion

Crypto expands access because anyone with a phone and internet can move value without a bank. That matters when 1.4 billion adults remain unbanked, often due to distance, documentation, or cost barriers that block account opening. Digital rails help close that gap by letting people hold and transfer value directly on networks, not branch counters.

Remittances show the impact. Sending $200 through traditional channels still averages roughly 6% in fees across many corridors—money families never see. Crypto transfers and stablecoins (tokens pegged to a currency like the U.S. dollar) can cut that cost and settle faster, especially outside bank hours. Even the G20’s push to reduce remittance costs to 1% by 2027 is off track, underscoring why people seek alternative rails when legacy systems lag.

On the ground, usage is rising where currencies wobble. Reports in 2024–2025 document heavier stablecoin use for day-to-day payments and cross-border transfers in places like Argentina, Turkey, and parts of Latin America—pragmatic “digital dollars” when local money erodes. Think of it as a mobile, global cash pocket. It isn’t risk-free, but it’s accessible.

Practical takeaway: a small crypto or stablecoin balance can function as a low-friction wallet for receiving help from abroad or paying online services—no branch visit required. Understand fees, choose reputable providers, and learn basic self-custody before moving larger sums.

Reason 5: Innovation — More than Just Money

Crypto is a software platform for finance and ownership, not just a new asset price. Smart contracts—self-executing programs on blockchains—let money and logic move together, so agreements (like payments or collateral releases) run automatically when conditions are met. That’s the engine behind decentralized finance (DeFi), NFTs, and tokenized real-world assets.

Start with DeFi. DeFi refers to peer-to-peer financial services built on public networks (often Ethereum), where code replaces many intermediaries. People can lend, borrow, trade, or earn yield via open protocols that settle 24/7. It’s early and risky, but the idea is simple: programmable finance with fewer middlemen.

Now NFTs. Beyond art, NFTs are verifiable digital property rights: tickets with anti-fraud features, game items you can resell, or brand memberships with perks. Research and industry trackers continue to catalog these uses across fashion and entertainment, pointing to utility that extends past collectibles.

Finally, tokenization. In 2024 BlackRock launched BUIDL, a tokenized U.S. dollar liquidity fund on Ethereum; by 2025, its administrator reported assets above $1B—evidence that mainstream finance is testing public-chain rails. Analysts at S&P Global call tokenization promising for efficiency and transparency in private credit, while noting real limits and regulatory frictions.

Risks remain—hacks, bugs, compliance. Treat innovation exposure as a measured slice, not your core. But the direction is clear: money, markets, and ownership are becoming programmable.

Reason 6: Institutional Adoption & Legitimacy

Institutional participation has transformed access and credibility. In the U.S., regulators approved spot Bitcoin exchange-traded products on January 10, 2024, allowing mainstream brokerage and retirement accounts to buy BTC exposure in a familiar ETF wrapper. This decision unlocked new distribution and helped formalize operational standards around pricing, custody, and disclosures.

Asset managers moved quickly. BlackRock launched the iShares Bitcoin Trust (IBIT) and reports strong demand alongside record iShares platform growth in 2024–2025, signaling durable investor interest through regulated channels. Public updates describe Coinbase Prime as service provider and note BlackRock’s broader ETF inflows this year.

Traditional banks also built infrastructure. BNY Mellon, the world’s largest custodian, went live with digital-asset custody for bitcoin and ether in 2022 and has continued expanding services; in 2025 it was selected to custody reserves for Ripple’s U.S. dollar stablecoin, underscoring institutional-grade safeguarding for token projects.

Regulatory clarity is advancing in major jurisdictions. The EU’s Markets in Crypto-Assets Regulation (MiCA) entered into force in June 2023, with stablecoin rules applying from June 30, 2024 and licensing for service providers phasing in across 2024–2025. Clearer rules reduce operational uncertainty for firms—and, by extension, for retail investors.

Reason 7: Liquidity & 24/7 Markets

Crypto trades around the clock, giving you flexibility that traditional stock markets don’t. Unlike equities with closing bells, crypto spot and DEX (decentralized exchange) markets run 24/7, letting you react to global news in real time or set orders that work while you sleep. Major finance outlets now frame 24-hour access as a defining difference, and even some stock venues are exploring longer sessions under crypto’s influence.

Liquidity is accessible in two ways. Centralized exchanges aggregate buyers and sellers much like traditional venues, while decentralized exchanges such as Uniswap use liquidity pools—shared token reserves that enable instant swaps via smart contracts. Anyone can deposit equal-value token pairs to seed a pool and receive a proportional claim on trading fees. That structure reduces wait times for counterparties and keeps markets moving, even off-hours.

Volume isn’t constant, and it matters. Reported 24-hour turnover on top exchanges can be substantial, but depth varies by asset and venue. Lower-liquidity pairs can widen spreads and increase slippage—the difference between expected and executed price—especially during volatile moves. Use limit orders, avoid chasing illiquid tickers, and verify an exchange’s transparency and reserves with reputable trackers. Flexibility is the benefit; disciplined execution is the rule.

Reason 8: Self-Custody & Control

Owning your private keys means you control your crypto—no exchange approval required. A private key is a secret code your wallet uses to prove ownership and authorize transactions; lose it, and you lose access to the funds that key controls. That’s why the mantra “not your keys, not your coins” matters.

How you hold keys changes your risk. Hot wallets (apps connected to the internet) trade convenience for more exposure to online attacks. Cold wallets (offline hardware or paper) keep keys off the internet and reduce hacking risk, making them better for long-term storage. Think checking account versus home safe: easy access vs. deeper security. Many beginners use a hot wallet for small spends and a hardware wallet for savings.

Self-custody also limits counterparty risk—the danger that a platform fails or misuses deposits. The 2022 collapse of FTX, including findings of customer-fund misuse and the 2024 conviction of its founder, shows what can happen when you rely on centralized custodians. Proof-of-reserves audits can improve transparency, but they don’t eliminate all risks or replace sound custody practices. Control the keys; control the outcome.

One practical step: back up your seed phrase—the 12–24 words that can recreate your wallet—on durable, offline media, and never share it. Test restoring with a small balance before trusting it with real savings. Simple habit. Big protection.