Cryptocurrencies are getting more and more popular with each passing day and might even be gaining the upper hand over traditional currencies. Naturally many people are becoming interested in crypto and you might be one of them. If you are then perhaps you’ve wondered what the upsides and downsides are for such currencies and if investing in them is worthwhile as of now. We’ll be answering these questions and more in this guide.
While we believe that the pros outweigh the cons we will let you decide that for yourself after we list all of them so you can see if crypto is the correct investment for you. We’ve scoured many sites for crypto news to make the best possible guide that will introduce you to all the main pros and cons of crypto.
Pros of cryptocurrencies
Anonymity – ever since cryptocurrencies were created anonymity has been a big part of them. It allows users to conduct transactions more safely online and to feel less of a sting from data leaks that may have occurred on sites they frequent. If you have high regard for cybersecurity then crypto wallets and payments will be a great asset. The less info you leave about yourself online, the fewer regrets you may have down the line.
Absence of mediators – cryptocurrencies are decentralized. This means that there is no intermediary between you and the person you are conducting a transaction with. This is to prevent monopolies and also to prevent situations such as banks not allowing payments to specific sites.
Quick and easy transfers – if you wish to close your bank account the process can be quite painful. Compare this to ownership transfers in crypto where the process is nearly instant and free. While for many this might never come into play it still feels good knowing that if you ever need to transfer you can resolve it easily.
What about the cons?
Illegal activities – due to the anonymity of crypto it has been used for things such as illegal purchases of firearms from the dark web. This is because it is far more difficult for authorities to track these purchases when compared to traditional methods. Crypto has also been used for money laundering, where someone converts their illegally obtained funds to crypto which they can then use without worries.
High volatility – because of the nature of cryptocurrencies the markets are highly volatile (in comparison to traditional markets and funds). This means that the crypto you obtained at one rate may suddenly plummet in value the next day resulting in a loss. This can be seen as an upside by some however as the opposite can happen, resulting in profits caused by this volatility.
Risk of loss and responsibility – cryptocurrencies have no mediator, while this is an upside as previously stated it also inadvertently causes a downside alongside it. Your crypto wallet may run into some issues and cause you to lose your money. You cannot file a claim like with banks as there is no one entity controlling the funds. Whatever happens, you are mostly on your own and this is a risk you must accept if you wish to delve into cryptocurrency trading of any kind.
We hope that this guide has helped you not only understand the basic features and risks of cryptocurrencies but also allowed you to better make the decision of whether or not you will invest in crypto. If you do choose to invest then welcome to the likely future of funds.
We wish you the best of luck with your investments and endeavors and hope that you will have good success with crypto trading and anything associated with it such as NFTs or crypto poker.