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THE TOP PROS AND CONS OF CRYPTOCURRENCY

Over the last few years, cryptocurrency has rapidly taken over the world. From Bitcoin to Litecoin and Ethereum, they are now worth millions of dollars. But what are they?

A cryptocurrency is a digital asset which is designed specifically to work as a way of exchanging money. Securing financial transactions, verifying the transfer of assets and controlling the creation of additional units, it’s an incredibly complex concept to grasp.

Because of this, many people might be wondering whether or not they should invest in it (or use it as part of a side income). But that’s not the only downfall of cryptocurrency. You could also face issues with market fluctuations, no security over your assets and have to deal with the inability to trace transactions.

However, although there are several cons, there are notable pros that you should be aware of. To give you a better indication of the digital currency, today we will look at the pros and cons of cryptocurrency.

What are the Pros?

Transparency

One of the key reasons why so many people invest in cryptocurrency is the unparalleled transparency of it. Although the use of cryptocurrency itself is anonymous, all of the transactions are stored within an accessible, open ledger – known as the blockchain.

This allows anyone to view the data at any time – a perk that many people appreciate. This feature calls for a societal change as many people are wishing for a more transparent banking system.

24/7 Access

Following on from the above point, another pro of cryptocurrency is the fact that it’s accessible instantly, 24/7. Manageable on your mobile device, you’ll be able to spend it anywhere (as long as they take it as a form of currency of course). Providing more opportunities to customers, this convenience is a notable feature that has helped it to grow in popularity. If you want, you can even look into the best ways to transfer crypto to your bank account so that you can use it whenever you want to. You will be able to do this whenever you need to, day or night, making your life ten times easier than if you would have to wait.

Similarly, you’re able to trade cryptocurrency 24/7. Unlike stock trading, you can exchange it with others throughout the world no matter what the time. There are also lots of different websites that allow you to buy it within a time frame that suits you, including https://bitit.io/buy/ethereum-eth.

Inflation is Quite Unlikely

Unlike traditional currency that faces big changes in inflation, cryptocurrency doesn’t face this. This is because there is a limited amount of minable bitcoins. The currency was designed so that there are only approximately 21 million bitcoins available.

Easy Portability

The big difference between physical money and digital money is that large quantities of it can be easily transported without detection. However, this isn’t to say that you should necessarily carry billions of dollars worth of cryptocurrency.

What are the Cons?

It’s Complex

One big downside which is mentioned above, is the fact that cryptocurrency can be very difficult to understand. The very idea of a digital financial system which is stored on the blockchain can be incredibly confusing for those who haven’t used it before.

Even though more people are venturing into the world of cryptocurrency, some still remain skeptical of whether the benefits are truly worth the effort of understanding it.

No Security if You Lose Your Money

A definite disadvantage of cryptocurrency is that there is no security if you lose it. It’s easy for people to scam and steal from anyone who is inexperienced with the currency, making it quite a risky thing to invest in. You need to be careful with it, as you would with physical money. Otherwise, you could lose the money and you not see it again.

Transactions Can’t Be Traced

Following on from the security aspect, it’s important to know that cryptocurrency transactions can’t be traced. This makes it the perfect tool for online criminals. They can easily make and receive payments with cryptocurrency without being traced. This is perhaps the reason why many governments have banned particular currencies such as Bitcoin in certain countries.

So there are the pros and cons of cryptocurrency, now you can make up your own mind whether it’s something you would want to get involved with.

The Top Pros and Cons of Cryptocurrency

THE TOP PROS AND CONS OF CRYPTOCURRENCY

What are the Pros?

What are the Cons?

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