It’s been more than a decade since we have heard about cryptocurrency. Still, so many investors seem to be confused about whether to invest in it or not. The volatile nature of the investors is due to the highly unpredictable behaviour of various digital currencies. Moreover, there are thousands of virtual currencies that have been born as a result of global interest in XBT/USD.
Bitcoin may be profitable when the market is unstable. Without any doubt, bitcoin is the most popular cryptocurrency and has been doing great among other digital currencies. And the interest of investors has also increased in the XBT/USD due to its exchange rate.
It is a general opinion that investing in cryptocurrency is a money-making option. However, it is essential to look out for all the factors responsible for a hike or downfall of a particular cryptocurrency.
Before investing in cryptocurrency, it is important to do your own research and analyze the best platform for you. Learn how to mine and how much it will cost you to optimize your mining. Let’s discuss some pitfalls of cryptocurrency that you should keep in mind while investing in it so that you can avoid loss in cryptocurrency.
Things To Take Care While Investing In Cryptocurrency
Without any doubt, there is a risk involved in any investment we do. Similarly, various types of risks are involved with the crypto investment. According to BusinessInsider, 42 countries have an implicit ban on certain cryptocurrencies. If you find yourself in one of those countries, I will personally recommend you not to deal with digital currency. Or you will have to look for certain cryptocurrencies which are legally operating in your country. Other than those 42 countries, 154 countries allow crypto trading and investors have been benefiting from it. Let’s have a look at some points that you should be aware of while investing in cryptocurrency.
Like other new technologies, cryptocurrency is also facing opposition. So many government organizations and banks are totally opposed to it as adopting cryptocurrency completely can affect their business badly, and their entire system can collapse. Moreover, cryptocurrency is expensive to mine.
2. A Door To Unethical Activities
Many of the cryptocurrencies still keep the identity of the user anonymous, inviting lots of illegal business persons to make a trade. According to Coin-base, a lot of criminal activities have been recorded with the cryptocurrency, and digital currency was found involved in illicit finance.
However, many platforms have made it necessary for the users to first identify themselves. So, look for a legit platform while investing in cryptocurrency.
3. Take Care Of Various Risks
However, using cryptocurrency for payment purposes is transparent, safe and real quick, but still, experts warn us of some specific risks associated with it. XBT/USD, being the most popular digital currency, still shows a lot of fluctuations within a single day which makes it quite difficult to deal with it.
On the other hand, the XBT payments can not be reversed anymore. Once the money is gone, it is gone. So, you need to be very careful about the address you are sending the money to. There is a bit of a lack of buyer protection while dealing with cryptocurrency as well.
4. Not An Extensive Currency
Despite being decentralized, cryptocurrency emerged with massive growth in the past year. However, there are still online dealers who do not deal in cryptocurrency. Only a few online retailers have adopted cryptocurrency, and the others are still using the same traditional one.
Why You Should Start Using Cryptocurrency Now
When there are some risks associated with cryptocurrency, it provides you with lots of advantages as well.
However, after reaching the heights in the past six years, XBT has seen a downfall by reaching a value of about $40000.
But still, experts at Essay Help Online and various platforms suggest that it will go up once again in a similar way it has gone up at the beginning of the last year, showing an increase of more than 700%. But, how is that possible? This is due to scarce supply and high demand. The same goes for Ethereum. Such cryptocurrencies keep a limit to their supply. Hence if the demand is increased, their value is increased just like gold or silver.
2. Paying With Cryptocurrency
Although slowly, cryptocurrency is now growing as an accepted currency globally. After the announcement from Elon Musk about Tesla cars being traded via cryptocurrency, the impact has gone to another level.
For being able to pay with bitcoin or other cryptocurrencies, you will need to install a certain wallet app on your smartphone and can pay via QR code.
3. Transaction Facility
Transfering, managing or accessing your digital money is really easy. You can easily transfer it to other accounts within seconds.
With conventional banking, it could take you days, even weeks transferring money from one corner of the world to another. It takes 5 to 6 working days to transfer money to Europe from the US. On the other hand, it may take you some clicks to transfer it via cryptocurrency.
4. Safe & Secure
Digital money is completely secure to use as it uses a chain of blocks, which makes it transparent. It is a blockchain network that is a decentralized system. Your data is stored at various end devices, nodes and computers, and not at any particular central location.
If someone tries to steal your data, they will have to get it accessed from all the points at the same time, which is not possible practically. This makes cryptocurrency completely secure and safe to use.
While Summing Up…
Cryptocurrency is a growing digital money, and the world of digitization reflects how we will be dealing in future. Sooner or later, it will be the ultimate currency in the world or most parts of the world. Along with having some risks, there are so many benefits to using digital currency as well. Keeping a keen eye on the risks, you can get a tremendous advantage from it.
Claudia Jeffrey is currently working as an Editor QA at Crowd Writer, where students look to buy dissertation UK. Claudia is a tech-geek who keeps herself updated with advanced technology. She loves to read tech-related articles and often shares her knowledge with the readers.
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