Advantages and Disadvantages of Crypto Currency

The independent functioning of the digital currency that has taken the entire world by surprise is the cryptocurrency, a digital form of owning money, not in the physical form. That is the simplest way to answer the mammoth of questions of genuine investors who are looking for something different, in the form of safer digital coins that are stored forever and are money equivalents. The transfer of funds, Payment for transactions, all can be done electronically without the intervention from government, regulators who are always eyeing such short-term revenue generators.

The most popular cryptocurrency Bitcoins, provided the optimum solution for the trading in the digital coin currency, mitigating the difficulties of trading in the traditional currency. Every new opportunity comes with inherent risk, however, this form of trading with the safer concept of securing the digitally encrypted code, that forms exchanged with traditional currency as and when required, has a huge advantage of being the most traded instrument online by millions of investors.

Advantages

  • the cryptocurrency are the most transparent form of currency that ever existed, there is a complete trail of transactions that are recorded, and cannot be erased
  • the transactions are verifiable by all, at any point of time without the right to delete or tamper the original records
  • the experience of inflation shrouds the traditional currency system, pushing it to certain limits when the entire physical currency had to be devalued, however, with the cryptocurrency, there is no worry of inflation affecting the performance of the digital coin currency in exchanges
  • the transfer of crypto coins is easy without having to carry cash, mere transfer of the digitally encrypted code is sufficient
  • the safety of the cryptocurrency has always been a subject of commendable discussion by financial experts, they are safe and secure, once stored in the digital wallets assigned

Disadvantages

  • the concept of cryptocurrencies are unique hence the complete understanding of the digital assets is important before even venturing into the world of crypto, without any experience it would be difficult to manage the wallets, the transactions. Investing heavily depending on the online broker could be a disaster if they choose an unlicensed and unregulated crypto broker
  • unlike the traditional banks, when the money is deposited into an incorrect account can be traced and refunded, there is no chance of the crypto coins to be traced once it is saved in the public domain, there are a lot of hackers who could easily wipe off the coins from the public wallets. This is one of the main reason why many governments have made the cryptocurrency to be a highly risky form of trading
  • The crypto exchanges deal with more than 1000 coin currencies, hence there is a lot of volatility considering the limited supply of the coin, and if the market fluctuations can be bared, there is a good scope of the coins to appreciate highly in the long term once all the dust surrounding the crypto space settles.