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A few years ago, most people had never heard of the term ‘cryptocurrency’ before. But nowadays, it’s a topic that is difficult to escape. Constantly hearing people talk about it might be making you interested in investing, but it’s good to get an idea of the pros and cons of cryptocurrency first.
The main pros of cryptocurrency are:
This article will discuss the pros and cons of cryptocurrency in greater detail, so be sure to read this helpful guide if you want to gain some valuable information.
Most investments come with pros and cons, and this includes cryptocurrency. Knowing exactly what to expect before deciding to invest will help prepare you for all possible scenarios.
One of the first things to remember about investing in cryptocurrency is that you should only invest an amount you can afford to lose.
With that said, let’s take a look at the main pros of cryptocurrency
Of all the pros and cons of cryptocurrency, this is one of the biggest pros. The main reason most people choose to invest in cryptocurrency is to make profits. The prices fluctuate pretty regularly, but when they’re high, the profit potential grows tremendously.
Getting in when the price is low and holding until it goes up could lead to high profits.
When you get paid, it goes into your bank account. Then, you need to go through your bank to:
The bank works as the middleman between you and your money, meaning the money isn’t entirely under your control.
Cryptocurrency is decentralized, meaning no bank or other middle man is involved. You have direct access to your crypto keys, and no one else does. You don’t have to rely on any other institution to keep your money safe, which is something many people find attractive about crypto.
Nowadays, all it takes is a few clicks on your computer or smartphone, and you’ve bought some crypto! You can buy it instantly, and it’s just as easy to sell it whenever you need to.
This makes it easy for pretty much anyone to get involved with crypto, but it wouldn’t be possible without easy-to-use exchanges.
There are many user-friendly exchanges out there for buying crypto. An example of one is Coinberry, an exchange based in Canada. Buying crypto can often be complex and stressful, but using Coinberry to purchase cryptocurrency is great because of its user-friendly design.
The price of crypto and the fees on Coinberry are also low, which are crucial factors to consider when choosing an exchange. These factors make buying and selling crypto an enjoyable and easy experience!
Blockchain technology is the basis of cryptocurrency. It’s a decentralized technology, meaning the network users are in charge rather than an entity (like a bank or other organization).
Many people see this as a better way to manage money because it keeps the banks away from their money. By investing in crypto, you’re also investing in the incredible and exciting technology that backs it.
One of the great things about crypto trading is that the markets are open 24/7, unlike the U.S. stock market, which is only open during business hours. This means that you can buy or sell crypto whenever you need to.
Since crypto can be volatile, you may need to buy or sell yours at any hour of the day. That is why using a good, reliable exchange that operates 24/7 is vital. Coinberry, the exchange mentioned earlier, is an example of an excellent Canadian 24/7 exchange.
Whether it’s 4 am or 2 pm, you can trade your crypto whenever you want, so you never have to worry about missing out on anything.
Of all the cryptocurrency pros and cons, privacy is one of the most important benefits. Cryptocurrency offers more privacy than fiat (regular currency) does.
Think about it: when you use fiat currency, you need to open a bank account and give the bank all your personal information. This includes your full name, address, phone number, social security number, and date of birth.
Although many cryptocurrency transactions aren’t completely anonymous, they are more private than fiat transactions. You don’t need to give anyone your personal information; all you have is a wallet address.
The wallet address identifies you, but it is simply a string of letters and numbers. This makes it easier to stay anonymous. Here is an example of a wallet address.
Although there are many pros of cryptocurrency, there are also some cons. It’s good to know what the main ones are before investing so that you can come to the most informed decision.
So, let’s take a look at the main cons below.
Crypto can be highly volatile, so you need to be aware of this before choosing to invest. Of course, volatility can be risky, but it also means that profits can be high. So, the volatility of crypto can be seen as both a pro and a con.
Cryptocurrency is still very new, and so is the technology behind it. Investing in something new can have risks, but it can also be beneficial in the future if it expands and continues to grow in value.
Once you understand the risk of investing in something new, you should be able to choose whether it’s the right choice for you.
Now that you know the primary pros and cons of cryptocurrency, you can make an informed decision on if you want to invest.
To recap:
The main pros are:
The main cons are:
And don’t forget to check out Coinberry if you’re looking for a reliable, easy-to-use Canadian exchange that offers all the most popular currencies.
Coinberry is a Canadian digital asset trading platform that provides users the easiest and safest way to buy and sell Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Stellar in Canada. Assets held by Coinberry are not eligible for Canadian Investor Protection Fund coverage.
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