INSIGHTS

WHY CRYPTOCURRENCIES ARE A GOOD CHOICE OF ALTERNATIVE INVESTMENT

---

Most of our clients, partners and asset managers work with cryptocurrencies and therefore also invest 
and build a Digital Asset. Even with a wide range of alternative investments, cryptocurrency has still 
become an increasingly popular choice of investment in recent times. Here are a few of the reasons that 
make cryptocurrency a good choice of investment, and why a growing number of people are choosing it 
as a diversification strategy.

5 Reasons why Cryptocurrency a good choice of Investment: 

• Cryptocurrencies are becoming more regulated

No longer is cryptocurrency seen as the “wild west”. In recent years there has been an increase in 
regulation surrounding cryptocurrencies, with many cryptocurrency related companies opting to
regulated within their jurisdiction. In the near future, cryptocurrencies are likely to offer more stringent 
regulation than some other types of alternative investments.

• It’s now possible to exchange cryptocurrency for cash with ease

With financial services such as Wirex now available in several countries, it is now easier than ever to 
convert cryptocurrency to cash or spend it. Unlike most other alternative investments which are illiquid 
and it can take a long time to get access to the funds. For example, if a rare collector’s item had been 
invested in, it would likely take a long time to find a buyer. It can also be tricky to find out the value. 
When you want to sell cryptocurrency, its somewhat easier to find a buyer.

• A good way to diversify your investment portfolio

Having a diversified portfolio is important for successful investing. Without diversity throughout an 
investment portfolio, the risk will not be evened out and the portfolio would be vulnerable during times 
of financial crisis and economic events. By using cryptocurrency as an alternative investment to 
diversify, these issues could be avoided as cryptocurrency will react to economic factors differently than 
other investments in the portfolio.

• Get involved in a growing market

As the cryptocurrency market is maturing, the trading market is growing. Offering hedge options and 
trading flexibility makes cryptocurrency an appealing choice of alternative investment, as it offers some 
of the benefits that traditional investment provides.
​

• ​Reputable companies and organizations are jumping on the bandwagon

Blockchain is the technology behind cryptocurrencies and the large variety of uses across multiple 
industries including the financial sector. This has attracted the attention of big names such as Google, 
Microsoft, Apple and even key payments institutions such as JP Morgan and Mastercard. They simply 
don’t want to be left behind by innovation. Taking into consideration that blockchain is the backbone of 
cryptocurrency, it would likely be as worthwhile an investment as some other early stage options such 
as venture capital.