Cryptocurrency is relatively a new concept that not many might know about. Yet most understand that it has great value.
If you have thought about trading with cryptocurrencies, it is important that you understand a few important facts about cryptocurrencies. Here are a few you need to be aware about:
You will need a wallet to hold your cryptocurrency
Holding a crypto or a digital wallet is very important if you are dealing in cryptocurrencies. There are wallets that come with public keys and private keys. Private keys are much more reliable and give you safe access to your digital wallet. However, if ever you happen to lose this key, you might as well forget about getting back your cryptocurrency. Your digital funds will end up disappearing into crypto-void and you will lose them all.
Cryptocurrencies are not 100 percent safe
Compared to other forms of currencies, cryptocurrencies are safe if you hold them in a safe digital wallet. Yet, they can still be accessed by scammers who mine cryptocurrencies. Known as “Cryptojacking,” the process involves putting malicious code into your smart phone or computer. You may want to run a check if your computer or phone has slowed down or if the battery is getting discharged too fast.
Volatility is very common in the Crypto Market
Share market is volatile; but the crypto market is super volatile. There can be drastic changes in the value of these cryptocurrencies, which may or may not be in your favor. It all finally depends on how good your sense of trading is. Nevertheless, like the share market, it is the external factors that tend to impact the value of these digital currencies.
Not all countries allow crypto trading
Anyone, anywhere in the world, can get a crypto wallet. Nevertheless, there are a few countries like Algeria, Ecuador, Bolivia, Nepal, Cambodia, and Bangladesh that have banned the use of cryptocurrencies. If you are a resident of any of these countries you may not be able to enjoy the rights of crypto trading.
Cryptocurrency can be a boon for ecommerce
Opening a bank account may not always be easy in all the third world countries. Yet cryptocurrency can be easily used in these countries since they have good internet connectivity. In fact ecommerce websites can use cryptocurrency as a payment option and reach out to markets they have never tried to explore.
Cryptocurrency has no borders
Unlike foreign exchange, cryptocurrency has no borders. There is no particular agency or government that regulates the use of cryptocurrency. It can be freely used for any digital transactions from anywhere in the world.
You may have run an online search many times on “Is bitcoin code a scam?” But did you know that Bitcoin is easily transferable between two parties? This will only take a few minutes and involves hardly any costs, irrespective of the size of the transaction. It is only a digital currency that has no physical representation. Nevertheless, it takes quite a lot to mine bitcoin, process digital transactions, and maintain the Blockchain.