Currency is something we use every day. Usually is fiat currency like euros, dollars, yen, and other currencies. Sometimes we go for banknotes and coins, while we use alternative payment methods such as credit cards, e-wallets, and more.
The rise of technology has prompted the origin of digital currencies or cryptocurrencies as they’re commonly known. They have been around for a while, which is why they’re popular. Certain airline companies cover cryptocurrencies as payment methods, and so do some online businesses.
The use of crypto has been largely accelerated by the introduction of e-wallets where it can safely store it amongst other fiat currencies. This is helpful because if you use a platform which doesn’t accept crypto, you can still use the fiat stored in it. One specific industry that e-wallets are popularly used is the casino industry where the use of crypto is still growing but not all accepted.
Just like everything, crypto come with their pros and cons, and you must consider both before going for one or several cryptocurrencies.
The Pros
Before you dive right into it, you should know that cryptocurrencies are currencies you can’t touch. They are digital and exist only online. And their online value can be determined by the users and crypto miners. This is one of the things that can be viewed as a pro.
They aren’t subjected to a bank or any other kind of financial institution. This means that the people using the cryptocurrency will determine the value of a single asset. In other words, the more people go for it, the more valuable it becomes.
This is a level of freedom that no fiat currency can offer. You are in total control of your assets and won’t get any pesky fees for maintaining your account. Privacy is yours to enjoy as you’re the only one to access and use them. This means you won’t get taxed for owning cryptocurrency, but the tax will come if you convert them to fiat money.
Privacy comes via two keys which are private and public. The former is there to confirm the transaction individually, and the latter is used to establish a connection between 2 users, regardless if they’re individuals or companies. These are also necessary for making transactions.
You’ll get the two keys when you create an account and a username, ensuring you’re a unique crypto user. More importantly, you don’t need anything personal attached to the account, which is how you remain anonymous online, giving you an aura of security.
Another pro to consider is the profit potential of the various kinds of cryptocurrency. The profit potential is enormous as people have made millions back in the day simply by trading cryptocurrencies. They become users, investors, and traders. This is one of the reasons why so many have decided to go for them.
There are lots of platforms that offer crypto trading. You can trade different kinds of cryptocurrencies, turn them into fiat money or buy and sell assets you own for fiat money. You don’t need to trade yourself as you can rely on trading bots.
Naturally, you’ll need some experience with that before you start reaping the benefits, and you’ll need a crypto wallet that will keep your assets. People need to be knowledgeable to do so, which is why some rely on alternative trading options such as trading bots.
The Cons
Now that you’re familiar with the advantages of crypto, you’ll need to be aware of the disadvantages as well. We can start with the profit potential, which is something that gets a lot of people to start using crypto.
The profit potential ties to volatility. The thing about volatility is that it’s a double-edged sword, as it can go up and down. When it’s up, it takes the crypto value up with it, and when it’s down, it takes it down. This happens without warning, almost overnight, which is why the value can drop unexpectedly.
Another vital con of using crypto is security. There are lots of companies that offer different variants of wallets that work as storage for your assets, but the cold ones are the ones that can keep you truly safe. That’s because hackers lurk online, exploiting the weakness of cold wallets and trading platforms to get their hands on cryptocurrency assets. This is something that the crypto trend still hasn’t solved, and it’s looming over every crypto user’s head.
The volatility issue also ties to the value of every asset. There will never be a stable price for a single asset, which is why certain investors buy assets when their prices are down. And the users and miners determine which is all good, but with no commission or regulatory body, the value of an asset will go up or down indefinitely. But if you’re looking to buy an asset with a high value, you’d better have the budget.
Another thing that affects the world of crypto is that it’s not getting global acceptance. Sure certain companies and online businesses accept them, but this is only visible in certain countries. Some banks have even tried catching up with the trend by creating their cryptocurrency. In other words, certain countries are open to cryptocurrencies while others aren’t.
Finally, there isn’t just one kind of cryptocurrency available online. So make sure the country you’re in supports them, as you’ll have an easier time as a crypto user. If you’ve started early, you’ll know what you’re doing. But if you’re new to the game, you’ll have no idea where to start, and if you go for advice, you’ll get conflicting messages.
Conclusion
Making informed decisions is the best way to go about cryptocurrency. That’s why you have the pros and cons of becoming a crypto user. It’s always a good idea to catch on early to a trend. It would help if you also did your research before going down that road and once you have enough data to decide.
If you go for it, you’ll reap the benefits, but you’ll also need to face the challenges that come with it. The pros come with the cons; if you play your cards right, you’ll be a successful crypto user. Take every success humbly, and take every loss as a lesson; you’ll learn a lot in the crypto world.
