Crypto has come a long way from being a speculative investment in the early days of Bitcoin. Today, it is becoming more mainstream and accepted as a form of payment. However, besides buying and selling crypto, people are starting to hold onto their digital assets, treating them as a form of savings. Here are five reasons why you should have crypto savings.

1. Hedge against inflation

Fiat currencies are subject to inflation, which results in the loss of value of money over time. In contrast, certain crypto like Bitcoin have a limited supply, and this scarcity creates a deflationary effect, where the currency can gain value over time. By putting some of your cash into crypto, you are essentially hedge against inflation, preserving your purchasing power in the long term.

2. Exposure to high-growth potential

The crypto market is volatile, and it's not unusual for coins to fluctuate between 10% to 50% in a day. While this can be nerve-wracking for traders, long-term investors can benefit from the high-growth potential of crypto. For example, during Bitcoin's peak in 2017, the coin's value increased by over 1,400% in a year. By holding onto your crypto assets, you can be exposed to this high growth potential and potentially earn substantial returns in the future.

3. Earn passive income

Cryptos like Bitcoin, Ethereum, and Tether US (UDST) can be stored in a digital wallet that allows you to earn interest on your holdings. This feature is known as staking or lending, where you lend your coins to other users on the network who need them in exchange for interest. This is a great way to earn passive income on your crypto savings, especially if you're not planning to trade them anytime soon. The Truzact app is just the right app for you if you want to earn passive income on your crypto assets with flexible investment.

4. Diversify your portfolio

Traditional savings vehicles like savings accounts, bonds, and CDs might not offer the diversity you need to mitigate risks. Crypto, on the other hand, offers a new asset class that can help you diversify your portfolio. By allocating some of your savings into crypto, you can reduce your reliance on traditional assets and potentially earn higher returns.

5. Long-term store of value

Finally and perhaps most importantly, cryptos like Bitcoin are a long-term store of value. The digital assets are secure, cannot be manipulated by central authorities, and are not subject to the same forms of regulation as traditional assets. In the long term, Bitcoin and other crypto are likely to grow in value, and it's a smart move to allocate some of your savings to this asset class.

In conclusion, having crypto savings is becoming an increasingly popular choice for those looking to diversify their portfolio, hedge against inflation, and earn passive income. While the crypto market can be volatile, it has a high-growth potential that should be taken advantage of. As with any investment, it's best to have a solid understanding of the market, and you should seek the advice of a reputable financial advisor before investing.

The Truzact app provides you easy-to-use flexible investment plans to hedge against in and a community to keep you up-to-date relevant information about the crypto space. Join our telegram community HERE to learn more.

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