Nothing in this world is perfect. Even the most extraordinary things are not flawless. Cryptocurrency has a somewhat similar story. With the inception of cryptocurrency, the financial world has evolved remarkably.
A lot of troubles have been sorted out already. Multi-national organizations have started accepting digital currency as a mode of payment for quite some time now.
However, with all these qualifications, there are still some loose ends. If you have decided to invest in cryptocurrency, then you need to be aware of everything.
We have narrowed down the basics that are essential for a person to know before taking a serious step. Where bitcoin has plus points, it has some drawbacks as well.
Pros of Cryptocurrency
These are some of the best advantages of cryptocurrency that have contributed to making it what it is today.
We know how hard it is for a person even to earn money. You have to burn your calories and make a lot of effort to make even a tiny amount of money. Spending your hard-earned cash on bank transactions and transfers is quite troublesome.
You can not even transfer money to your loved ones, living in another part of the world, without spending vast sums of money.
But that is not the case with cryptocurrency - in general. However, the transaction needs to be confirmed by miners and today that is somewhat more expensive for Bitcoin than for most of the other crypto currencies. But there are solutions such as Lightening network making the transactions both faster and cheaper. You can send crypto coins to anyone, anytime and in any part of the world. Nobody will ask you to pay any additional charges. So, no one can control the pricing and so on, just a contribution to the network of miners.
Another benefit of using cryptocurrency as a mode of payment rather than fiat currency is that it saves a lot of time. It is precisely because of the fast peer-to-peer transfer mode. You can pay, send or receive cryptocurrency within seconds.
In our fast-moving world, we can not take the chance of wasting our precious time. In fact, time has become the most sacred aspect of our lives now. Managing it between our job and family has become a tiresome task.
If something can save you from sweating over petty issues and provides you with some extra hours, then go for it. Cryptocurrency has the potential to save your precious moments from going down the drain. Why wait several days for an international wire transfer, making the transaction a problem in and of itself by using the big banks.
No More Frauds
Unlike the banking systems, cryptocurrency often keeps your private information confidential. Even the seller does not get to see it. You can buy crypto coins without facing the seller ever in your life. This confidentiality helps in avoiding any sort of data breach. Hence, you can depend on it without having a fear of being robbed. But make sure to keep those keys safe.
As no third party is involved, there is no chance of getting scammed. Everything is like an open book, and no other person can get hold of your belongings. Plus the blockchain technology strengthens security even more.
So when you decide to buy cryptocurrency, one thing that you should be sure about is that your money is going to be completely safe from the monsters.
There is no doubt about the fact that cryptocurrency is a revolutionary model of the economy. Back in the days, people had to bow their heads in front of central banks even when they became the victims of fraud or manipulated inflation. But no more!
The decentralized nature of cryptocurrency ensures complete control of the owner over his digital wallet. Government, banks, or any other third party can not even dream of invading it.
In other words, you are the master of your own fate in the world of cryptocurrency. Hence, cryptocurrency protects your money, your freedom, and your individuality. You no longer need to be dependent on banks or governments to solve your money-related issues.
Cons of Cryptocurrency
Cryptocurrency is by far the best of the best, yet it has its drawbacks that can not be ignored. These are some of the negative points that are still haunting the world of cryptocurrency and something you need to be aware of.
One of the worst things about cryptocurrency is its volatility. Prices rise and fall within minutes. That is why it is often said that investing in cryptocurrency is not for the faint-hearted. Plus, even if you have decided to invest, you must not put all your money at stake.
Most of the time, gaining huge profits is sheer luck. Often, the investors face losses because they are not aware of the uncertain nature of cryptocurrency. Before investing in it, you must do proper research. Otherwise, the only thing you will get is bad luck. But remember that “day trading” in one and the other form is for people investing their full time in it and keeping themselves updated in real time about how the economy develops.
For us normal mortals, if you decide to go for Bitcoin or any other Crypt the HODL strategy is probably better. With this you have made a long term strategic decision and you keep your crypto coins, not bothering about the short term volatility.
Loss of keys to the Wallet
Another disadvantage of cryptocurrency is that you must store and secure your wallet keys in a safe manner. You can forget, hard drives can crash, viruses and so on. Shit happens, and in worst case if you have not taken proper precautions all the coins in your wallet will remain there forever, and you won't be able to access them.
If you end up messing with your digital wallet due to some issue, you may never be able to get your money back. Because of this drawback, there is always a risk of a massive loss in cryptocurrency.
When it comes to the rules and regulations regarding cryptocurrency, everything is vague. Because of the lack of clarity in these critical steps, you are stuck in a vulnerable position.
What if you get scammed? Who is going to investigate it? How are you going to get your money back? Make sure to act cautiously. If you buy something anonymously, you still need to secure that you get what you pay for. There are emerging solution with smart contracts so who know in the future this might not be a real problem.
There are no universal cryptocurrency laws. Everything varies from country to country. And most of the regulations are arbitrary in nature. This increases the risk of being scammed or mugged by hackers.
Everything comes with its advantages and disadvantages. The only way to escape the drawbacks is to gain proper knowledge about the subject. Without it, there will be nothing but loss and chaos. All those people who have succeeded so far know this very well.
Although cryptocurrency has some flaws yet the qualities are much more in numbers. Plus, if you want to make the best out of a situation, you need to keep both the positive as well as negative aspects in mind. Deal with cryptocurrency in the same manner, and you will succeed for sure.
Disclaimer: We do not give any financial, tax, legal, investment, buy/sell or any other advice and/or recommendations – read and act on your own risk. Consult a competent advisor before you make decisions.