Why People Trade In Cryptocurrency?

• Asma Binte Rashed
• 25 Jan, 2022

Cryptocurrency is the most altercated topic in the trading field. Day by day, it attracts people the most and many of them are eager to invest in it.

A virtual currency that is protected with cryptography is a cryptocurrency. The best fact of this digital currency is nobody can commit promotion costs or disguises. It is also free from any government involvement.

Its transmission and take-in payment system is per-to-per and also anywhere in the world at any time. Cryptocurrency carried in a virtual wallet and freed us from holding cash.

Cryptocurrency provides easy and hassle-free trading. Its market value also increased for its quick update. This updated information is very beneficial for the competitive trade market of the super-fast world.

Advantages & Disadvantages of Cryptocurrency:

Cryptocurrencies gained their market. Their motive was to boost financial infrastructure. In the running situation of the trading market, crypto became people's first choice. But still, there is some issue that creates difficulties for the users.

Here some advantages and disadvantages of crypto are mentioned:

Advantages:

• It's a decentralized illustration for money, where no third party can interfere. It also forsakes the expectation of defeat of money, as large banks faced in the past few years.
   

• Crypto provides an easy transition process. Here transfer is quick, between buyer and seller, without putting the nose of the government or any other person. Also, cryptography protects its transmission process.
   

• As there is no third-party interference, transactions here execute within divers. For this, it's a time-saving source for traders.
   

• Investment in cryptocurrency raises good profits. Before the market crash, it hit $2.9 trillion. Bitcoin is the most powerful and popular among all cryptocurrencies. The most attractive part here is if you don't have enough money, you can purchase a fraction of one Bitcoin.
   

• Its money transfers are over the borders. It makes sure the penny transfers at a cheaper rate. That's why it's beneficial for the traders.

Disadvantages:

• It claims to disguise transactions. But it leaves a virtual trail that helps the financial authorities to track.
   
• It becomes an exotic instrument for criminals. They purify their twisty actions like money laundering, illegal marketing, drug selling on the dark web via it. Hackers are also like this protocol for their unlawful activities.
   
• Cryptocurrency is a decentralized process in which property is allotted among investors via blockchain even though its ownership is extremely beetling.
   
• Crypto blockchains are highly protected, but they also can be hacked. And hackers can steal coins or crypto-cash.
   
• Cryptocurrencies are not constant. Prices here are continuously being ups and downs. So trading here, you have to face some uncertainty.
   

Though it has some disadvantages, it is the best trading platform.

Is It a Scam or Not?

For cryptocurrencies protection, the authority designed Blockchain technology. It narrates the process of transactions and files it through blocks and time-stamps. All of its procedures are complicated. As a result, hackers can't effortlessly operate them. That's why their desire to hack nuts in the buds.

On the contrary, the transaction process asserts two-factor authentication. When any third party tries to enter into others' accounts, it instantly requires a username, password to start the transactions. It also asks for the code sent on the personal phone number. This way, they maintain their authenticity.
 

But it's not the End…

Though cryptocurrencies have high maintenance security, it doesn't mean it is beyond hacking. It is the biggest target of hackers, and they frequently try to hack it. Several times, they became successful. In 2018, shocking cryptocurrency hacking occurred.

It also creates some disadvantages in gaining profit because digital currencies lead to supply and demand without government rules or regulations.

It's a matter of concern that crypto crime is rising day by day. Fraud websites, digital Ponzi graf, celebrity involvements, romance scams are the main enticements of the hacker or scammers group.

If you are aware of all scams and can make the right decisions about your strategy of trading Cryptocurrency, it can be the best choice for you.

Cryptocurrency vs Forex & Stocks:

Cryptocurrency is free from inflation that is the best for the trade market. Here management of coins is according to demand. It makes the market stable.

Here the other good thing is, it is free from government interference. The global political issue can't affect this trade. It also has a decentralized protocol.

Any other trading sites don't have anything like it. Its transaction is super easy. It is a secured and private trading platform. People can easily trade here.

Forex is the most tangled source of trading. In Forex, there is a lack of transparency. Brokers control this market. For its broker-driven policy, it loses its clarity. Global politics affect the Forex market, that's a threat to the trading market.

Besides this, prices here are so high and complicated. But Cryptocurrency allows you to buy a fraction of whole coins (in case of having a low amount). In Crypto, coins buying processes are as simple as water.

Also, Forex contains high risks as well as high leverage. If you are new in trade, you should avoid Forex because without proper knowledge about Forex trading may cause you to lose all of your wealth.

Similar Topic: Who Trades In The Crypto Market?

Stock is a cash investment market from where anyone can gain profit. Here the trader can observe the cash gush. But it contains high risks in trading. People can lose all of their investments. If a company falls, shareholders' loss is mandatory.

When a company is bankrupt, the stockholders have to suffer the most. The stock market is not stable. Stocks value goes up and down with a glance of an eye. So the trader must have to enjoy the impulsive journey on the roller coaster, and it is worse for mental health.

The most valuable thing stocks lose their value day by day in this running world. Cryptocurrency is hassle-free trading and far better than stock.

Cryptocurrency is the most popular trading protocol of running days. People find it more beneficial. It is best on the comparison of Forex or Stocks.

Hopefully, all of you have a profitable trading experience. If not, do not worry! Start your journey with Cryptocurrency. Remember that it takes time for profitable trading. If you want to be a part of a gainful trader, you should focus on trading patterns and stick to them. You can also make your variant strategy.

Last but not least, don’t be greedy at this stage. If you do so, you’ll ruin it all at a time.