Cryptocurrency is digital money not under the control of central authorities or third parties between the sender and receiver.
Ethereum (ETH), Bitcoin Cash (BCH), Litecoin (LTC), Stellar (XLM), Polkadot (DOT), and Cardano (ADA) are some of the cryptocurrencies in the world market.
Cryptocurrency traders have unique IDs they use to transact. The payer uses the ID to make a payment which is then transmitted within the network before it reaches the payee.
Like many other investments, cryptocurrency trading could bring you wealth and triple your investment in a short period of time.
In 2009 an anonymous man who goes by the pseudo name ‘Satoshi Nakamoto’ created bitcoin which by 2011 it was worth one USD. The price escalated and now one bitcoin is equivalent to USD 58,000, making it worthy to invest in.
Some countries including Egypt, Bolivia, and Indonesia have banned the use of cryptocurrencies while some have not banned but do not endorse the use of these currencies due to several reasons.
Cybercrimes, as much as some of these currencies have strong cybersecurity, cyberattack bots are still out there preying on anyone to fall, the more you invest the more you are at risk of falling a victim at any given time. Cyber extortions, system glitches, and misinformation are likely to happen as well.
Cryptocurrency lacks regulatory clarity as it is meant to be highly protective of the users, which makes it unsafe for big investments. As one bitcoin amounts to thousands of dollars, some people choose these currencies as safe havens for their wealth but since you are only dealing with a system lacking in regulations, anything can happen to your money and no one will be accountable for it.
There is market instability as the currencies can rise and fall at any given time. Yeah, the same happens with the global financial system. Your investment can be highly affected if you do not have knowledge on how to grow the currency and cases around cryptocurrencies are unenforceable in court as investors have no recourse in case of anything. It is basically gambling with a hefty amount of money.
People have claimed to make a lot of money around cryptocurrency trading as the amount can inflate at any given time in your favour as well. However, it is better to know the risk before choosing to invest so that you are prepared for the worst as much as you do for the wealth.