You’ve probably heard various things about cryptocurrency and how popular it has become. But what exactly is cryptocurrency?
Cryptocurrency can be defined as digital or virtual money. Cryptos don’t come in physical forms, such as coins or paper money. A primary authority doesn’t issue them. And they don’t need banks for verifying transactions.
And like real money, you need to store them somewhere safe. Here’s where crypto wallets come in. Crypto wallets are apps or software programs. These digital wallets enable you to keep, transfer, and pay for cryptocurrencies. Some of the safest casinos in U.S. use cryptocurrency as their mode of payment through wallets.
Pros And Cons Of Investing In Cryptocurrency
There are pros and cons, just like in any business and investment.
Easy And Safe Transaction
When transacting with cryptocurrency, there’s no need for transaction fees, commissions, and paperwork. The transaction will be one-on-one in a secure network. The dealings would be easier, and there won’t be any more confusion about who will pay.
Immediate and Secure Ownership Transfer
If your digital wallet contains cryptocurrency, you’ll have a huge asset. You’ll only need the private key of the other person for an easy and secure transfer. There is also no need for approvals. For ownership transfer, there won’t be any paperwork and fee needed.
There’s no reversal when you conduct a transaction using cryptocurrency. Credible encryption is being used in transactions for protection against fraudsters and hackers.
No Manipulation and Scamming in Cryptocurrency
Payment through cryptocurrencies is never declined, unlike in credit cards or online banking. The receiver will get the payment in a few seconds.
No manipulation and scamming can happen with cryptocurrency investments because the system is being secured with incredible encryption.
No Chance of Personal Information Leakage
Buying from a merchant shop and paying them with cryptocurrency is very safe. You don’t need to share your private key with anyone, and the payment you’ll make is 100% encrypted. No one can see your payment data, and it won’t ever leak.
There’s a high probability of losing your investments. The main reason is there’s no ownership or authority that’s handling cryptocurrencies. You can’t claim or protect them from loss in case of any problems because any company does not control it.
So, do thorough research first and look for trusted crypto wallets with good reviews. Before using cryptocurrency, familiarize yourself with a country’s current policies about cryptocurrencies.
Illegal Activities Can Be Performed
There are some illegal payments and activities that are being done online using cryptocurrencies. No one has authority over it, though, so no one can ban it. Government officials and high authorities can only apply certain restrictions.
Cryptocurrency Market is Unpredictable
The market value of cryptocurrency is very unpredictable. Like in stocks, you can’t foretell when values will grow or go down.
You need to have specific skills, or you have to be a good analyst. You have to do some research and be up to date with the latest market news and trends about cryptocurrency. You have to be ready for any situation with cryptocurrency investments.
The Top 5
Various cryptocurrencies are emerging, but the top 5 cryptos have taken the investment world by storm.
A person under the pseudonym Satoshi Nakamoto created the first cryptocurrency. Bitcoin (BTC) started in 2009. BTC operates on a blockchain. It is a system that stores information to make it difficult to hack, change, or cheat the system. Additions to the system are validated. Bitcoin is safe and secure from hackers with the use of cryptographic puzzles.
Bitcoin’s rate shot up as it became a household name. You could buy Bitcoin for about $500 five years ago. But, as of November 10, the current price of Bitcoin is $66488.64 per (BTC / USD).
Etherium is a cryptocurrency that also runs on a blockchain platform. Program developers favor Ethereum because of its potential applications like non-fungible tokens (NFTs).
Ethereum has also undergone enormous growth. Ethereum’s price went from about $11 to $4,721.00 per (ETH / USD) in five years.
Binance Coin (BNB)
Binance launched in 2017 and is one of the largest crypto traders globally. You can use Binance Coin for trading and paying fees.
BNB has extended its service from trading to payment processing and travel bookings. Binance can also be exchanged with other cryptocurrencies like Bitcoin and Ethereum.
In 2017, Binance was just at $0.10. And as of November 10, 2021, it had risen to over $636.90.
Unlike other cryptocurrencies, Tether is a stable coin. Stablecoin is a range of cryptocurrencies that gets its market value from external sources. Tether is backed by fiat currencies such as U.S. dollars and euros. Tether’s value is presumed to be more stable than other cryptocurrencies.
The price of Tether (USDT) to USD rate today is $1.00.
Cardano has a smaller imprint, which can be appealing to investors for various reasons. ADA takes faster and inexpensive to finish than with a bigger system like Bitcoin.
Cardano declares to be more secure and more flexible. ADA unfailingly enhances its development to stay ahead of hackers.
Cardano’s token has adequate progress compared to other major cryptocurrencies. In 2017, ADA’s price was at $0.02. As of November 2021, its price was $2.23.
Investing In Cryptocurrencies
There are many cryptocurrencies out there to choose from. They have their share of pros, cons, and benefits. If you’re planning to invest in a crypto coin, make sure to do thorough research.
It’s essential to be knowledgeable in the history, background, and rules of each cryptocurrency. If you’ve already chosen your crypto, make sure to buy your coins in a safe and convenient place.