Since the introduction of cryptocurrency, many people have been fascinated by the uniqueness of this currency; a currency that works without the validation of a third party.
Many have also been left in confusion and fear of accepting the reality of cryptocurrency. Some say it is a Ponzi scheme that won’t stand the test of time, while others believe it is the breakthrough for financial transactions, lot of controversial thoughts have been shared in previous years.
In this article, you will understand the basis, benefits, risks and future of cryptocurrency.
Understanding the Basics
Cryptocurrency is one of the best types of currency in the 21st century which enables very fast transactions both locally and internationally without the need for verification from any bank.
All that is required is for you to open an account on your device, register it and begin your transactions.
All your cryptocurrency is well secured in a digital wallet and can be accessed anytime you need to make a transaction, be it day or night, weekend or weekday, transaction can always be done.
Below are some of the types of cryptocurrency, we have;
Bitcoin (BTC)
Bitcoin is the most popular cryptocurrency which was founded in 2009 by Satoshi Makamoko, it is the most commonly traded cryptocurrency, and it is the first decentralized cryptocurrency using blockchain technology to facilitate payments and digital transactions without the permission of any banking system.
Ethereum (ETH)
Ethereum is another type of cryptocurrency, but it is majorly used as a token to facilitate transactions with other cryptocurrencies like USDT. It was conceived in 2013 by programmer Vitalik Buterin.
USD Coin
This is another type of cryptocurrency, which is referred to as a stable Coin. It fosters faster and cheaper transactions than normal traditional transactions. It is backed by dollar-denominated assets which makes it stand out.
Cryptocurrency has grown to become a global currency, all these digital currencies are well-secured and stored in your digital wallet.
Benefits of Cryptocurrency
Simple and Easy Transaction is Guaranteed
If you have ever imagined transacting large amounts in the comfort of your home, then cryptocurrency would give you that opportunity. Going to the bank to make huge transfers and financial transactions can be stressful times, but with cryptocurrency, you’re secure.
Low Transaction Fees
Cryptocurrency has helped reduced the very high transaction rate imposed by most banks. These banks charge exorbitant transaction fees but with cryptocurrency, you can transact millions with a very low transaction rate.
Financial Growth
When you save your money with cryptocurrency, most times it tends to grow as the market appreciates. That way, the value of your digital money increases. As a result, saving can be considered an investment plan, even if that was not the original intent.
Risk Of Trading Crypto
Risk is a part of every business in which Cryptocurrency is not exempted. However, you can use risk management principles to manage the risk involved when you have developed a good knowledge of trading cryptocurrency.
1. Price Fluctuation
The price of the cryptocurrency can rise in a moment and the next moment it goes very low and then you will realize that you have lost a lot of money. Market stability is not always predictable.
2. Falling Prey To Scams And Fraudulent Crypto Platforms
Many people have developed crypto platforms just to scam and rip people off their hard-earned money, without a good knowledge of the real platforms you can easily get scammed of your cryptocurrency and when scammed there is no way to get a refund.
3. Loss Of Wallet
This can make you lose all your life savings, for example, if you misplace your mobile device and your private key was stored in there, it automatically means you have lost your cryptocurrency and when you misplace your private key there is no way to recover it, neither is there an office to report to for help.
4. Non-Refundable Transactions
Any wrong transaction made cannot be refunded. If you make the mistake of transferring cryptocurrency to the wrong wallet, you can not get a refund. It is advisable to always cross-check any wallet before sending funds.
The Future of Cryptocurrency
Cryptocurrency has proven to be very unstable over the years, this has made it so difficult to predict the future.
Many users lost their money in 2022 after a major collapse in the crypto world, but since then cryptocurrency has risen again, and many users are now benefiting and making huge gains.
Even with the uncertainty, The Ascent, Ric Edelman, founder of the Digital Assets Council of Financial Professionals, predicts that more than 500 million people worldwide will own Bitcoin by the end of 2023.
Indeed, cryptocurrency is the next big thing about to hit our world. We have seen the failures but we cannot doubt the success and contribution to the financial growth of millions of users all over the world. This is a system that allows its users to trade very fast at a very low rate and without the permission of any bank or governmental policy.
Everybody would adapt and get very familiar will cryptocurrency in the years to come, therefore we can say that cryptocurrency has a very promising future in building future wealth.