This is the time of being online, as everything that matters in terms of living is online. Be it our shopping, our workspaces, or even doctors and medicine. Everything is online. Similarly, now we have online money or Bitcoin. In online trade, the use of Bitcoin Bonanza or cryptocurrency is quite popular. If you have a good internet connection and some digital knowledge, you are good to go to understand and invest in Bitcoin. But unlike traditional coin or cash methods, these cryptocurrencies are only digital. So in case of loss of internet, you can be left without a single coin. Investing in bitcoin can be profitable and is living with modern times but keep in mind that this is a tangible resource and can be defined in many ways.
Some main reasons for cryptocurrency’s popularity:
- The major reason for the popularity of cryptocurrency or the crypto domain is its feature of peer-to-peer fund transfer.
- Another reason is these cryptocurrencies are not governed by any central or non-central authority and would not require any third party in case of a transaction of any kind.
- Another popular feature of cryptocurrency is anonymity. You can remain anonymous without much hassle.
There are many eCommerce giants like Microsoft and Tesla who are testing the waters for cryptocurrency. Due to all these features and more, government agencies are now looking into making cryptocurrencies legal.
Advantages of cryptocurrencies:
- Easy Fund Transfer: Transferring funds is easy with this. You do not need validation or approval in case of a fund transfer.
- Fast payments: Peer-to-peer process makes the payments faster. Even international transactions take almost no time to complete.
- No processing fee: As there is no third-party involvement, there is no processing fee is required. This makes it a much cheaper transaction mode comparatively.
- Security: As everything is digital, this is a safe and secure option in terms of the transaction. You need a key to access your digital wallets, so it is quite safe and secure. Moreover, the currencies use cryptography that is very hard to break.
Drawbacks to investing in cryptocurrency:
- Imperutable: As crypto is imputable, it is at the center of criminal activities.
- Irreversible: Once the payment is made, it can never be reversed, which means even if the transaction is done by mistake or any other issue. It can never be reversed.
- Payment accessibility: Most places do not accept cryptocurrency and have not recognized it as proper currency. Hence it can pose an issue in daily living expenses.
If you are a newbie in the cryptocurrency domain, then here is something you must know. As of current, there have been more than 15k cryptocurrencies found. But the two main types can be Bitcoin and Altcoin. An altcoinis Dogecoin, Ethereum, Cardano, Binance Coin, etc. But, before investing in these cryptosor anything related to cryptocurrency, it is important to have a safe digital wallet. With this digital wallet or online wallet, you can either store your bitcoins safely or do your transactions and investments. It is advisable to be conscious of the place where your wallet is, as that would be the determining factor when it comes to safety and security. It is advisable to use the Bitcoin Era as it is quite safe and secure and has an AI system in place. Now that your wallet is in place, you can use the traditional currency to buy some cryptocurrency.
Crypto investments can help you in generating good revenues. But it does come with some risks. So always be conscious of how much risk your investment involves and how much you can gain by investing. As a rule, try to invest around 5% to 30 %, with 5 % being with regular risk and 30% with high risks. Also, another thing is it is a tangible asset which means it has no real-world value and is functional in the virtual world or digital world. So to keep things simple, the use of traditional currency is not going out of the market any time soon. Keep a conscious thought about this too. Even though cryptocurrencies are popular across the world, traditional money has its place and value.