What Is Cryptocurrency? Is Cryptocurrency Safe?
Cryptocurrency is an encrypted, decentralised digital asset designed to work as a medium of exchange. It is not backed by any government or central bank. Simply put, its money created by the people, for the people and controlled by the people.
Whether you a complete beginner into the crypto ecosystem or slightly experienced, you will find this article useful. So let's dive in explore:
So, is Cryptocurrency Safe?
First of all, it is an encrypted digital currency that only you have access to once it's in your wallet. Second, it's hosted on a decentralised, cryptographically fortified network where hacking is next to impossible. Also, all transactions are trustless, so no intermediaries.
So to answer your question, yes cryptocurrency is safe. Just do your research before investing in any of the available coins.
Cryptocurrency Adoption
Statistics show that by the end of 2017 there were 18 million users actively engaged in the crypto world. By 2018 the valuation of users had gone up to 35 million, a substantial rise of 94% more users than the previous year.
The study also revealed an increase in the number of accounts at cryptocurrency exchanges. In 2017 there were close to 80 million user accounts. In 2018 the number increased to almost 150 million accounts. The number of users verifying their identity also increased. In 2017 there were 20 million verified users' accounts. In 2018 the number of verified users' accounts was up to 40 million.
The number of cryptocurrency users is expected to increase even more as more and new cryptocurrency products and services are developed and introduced in the crypto ecosystem.
Pros and Cons of Cryptocurrency
Pros
These are essentially cryptocurrency benefits.
Transparency
Despite of its anonymity features, crypto transactions are recorded and monitored. Each transaction is available for verification by everyone in the blockchain network, and therefore hard to fake. This greatly reduces fraud issues that conventional banks have to deal with.
Personal control
Crypto is a decentralised currency. Decentralised means that there is no central authority that regulates your money as well as its value. Everyone controls their cash.
Accessible to everyone
Any person with access to the internet can own a cryptocurrency. There are no rules of who can or can't access cryptocurrency. This provides financial options for people who live in countries that have limited financial services.
Fast and low transaction costs
Transactions are automatically executed and take a couple of seconds to complete. Also, when compared to other electronic payments systems, cryptocurrencies generally tend to have low transaction costs.
Perhaps these benefits are a clear indication of why the crypto sphere continues to experience massive growth. Now let's have a look at the cons.
Cons
These are simply risks associated with the use cryptocurrencies.
It can be unstable
Cryptocurrencies are known have high liquidity. Prices change frequently and sometimes by crazy margins. That said, you can make huge profits when the price of a particular cryptocurrency skyrockets or lose just as much if the prices crash.
Once you lose it, it's gone for good
If someone steals your coins or you lose your coins through a wrong transactions, there is no way to recover them.
Criminals like it
Its anonymity factor makes it a haven for criminals to transact without being identified. For instance, there have been lots of concerns that Bitcoin may be used by criminals to execute illegal activities such as terrorist funding and money laundering.
Cryptocurrency Use Cases
There are many ways you can practically use cryptocurrencies besides just as an investment channel. They include:
Low-cost money transfers: with cryptocurrencies, you can send and receive payments at low cost and high speed.
Travel the world: Travel agents like Destinia and CheapAir accept Bitcoin as a payment method for booking flights, car rentals and hotels.
Purchase products: For instance, De Louvois accepts the purchase of Lamborghini with Bitcoin.
Is Cryptocurrency Legal?
The legality of cryptocurrencies varies from country to country. It is still undefined and keeps changing in many countries. There are countries like Australia, Bahamas, Belarus, Bulgaria, Canada, U.S.A and U.K. that have embraced cryptocurrencies.
There are also countries like Egypt, Algeria, Nepal, Iraq, Bolivia, Morocco, and Pakistan that have completely banned the trading and usage of cryptocurrencies. So before jumping into the cryptocurrency bandwagon check their regulations status in your country.
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