Cryptocurrency has existed for a time now, there are already a lot of developments through the market, but still, for some individuals, it is still a new thing that they are not familiar with. That is why some of the potential investors are hesitant to try jumping on and trading with cryptocurrency. Nevertheless, investing, in general, is a risky thing to do, may it be in the stock market and a business and especially with cryptocurrency since it is still considered highly volatile.
Although in this time of technology, cryptocurrency or other forms of digital currency have made a lot of exposure and potential in different industries, including big businesses, the gaming industry, financial institutions and even national government. That is why recently, a lot of individuals also made profits through their investment in cryptocurrency, and if we will be assessing cryptocurrency in general, it is a mix of pros and cons. Making a profit through your cryptocurrency investment is a matter of deeply assessing the market, making the right moves, and being able to get through the risks.
Security and Protection
Since investing in cryptocurrency would cost you money and considering that it is highly valuable, security and protection is an important thing to consider. Good thing that with cryptocurrency, each and every transaction is highly secured, thanks to its blockchain system, which is a peer-to-peer way of transaction, and it is also transparent with anyone. And with cryptocurrency and its blockchain system, which requires a high computing technology and complex equations. Once you have done a transaction that cannot be reversed or changed back, this is the reason that your investment would most likely be not targeted by hackers.
No third party or middle man
The cryptocurrency was made basically to remove the middleman and every transaction; this would make every transaction easier and without paying high fees. Comparing it when using a bank, credit card or debit card on your transactions, you’ll basically be using it on merchants. In this case, the middlemen are the banks and credit cards that offer high transaction fees; there are also annual fees that come with it.
Potential hedge to inflation
This has been discussed by different experts, but basically, it can be a potential hedge to inflation simply Because it is not centralized or backed up by any national currency. Also, Bitcoin is known as digital gold, not like cash or fiat currency that national banks keep printing; most cryptos only have a limited circulating supply.
If you are familiar with stock market investment, there are actually a set of hours where you can trade, but with cryptocurrency, it is 24/7, and you can actually manage your time. That is why most investors choose to invest in cryptocurrency rather than the stock market these days.
For new investors, it might be difficult to understand since cryptocurrency relies on the complex algorithm of blockchain technology as well. That is why it would require investors to do intensive research and basic knowledge. If you are investing right away without the research and knowledge, it might actually lead to loss because you’re not aware of what you are doing. It is also advised to use cryptocurrency trading platforms for your investment where you can be guided with your cryptocurrency investment; for example, you can be secured with Bitcoin Evolution.
Even though cryptocurrency has a lot of potential and offers great profit, it is also dealing with high volatility. And with its volatility, no one can tell when it can happen; fluctuations and dips happen most of the time, and investors should be very much aware of this to secure their investment.
There are actually different types of regulations on cryptocurrency, and there are actually countries that have banned the cryptocurrency amidst its rising value. Some countries are still developing regulations on how their citizens can deal with their cryptocurrency in terms of investment and payment.