The advantages and disadvantages of cryptocurrencies

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Whether it is in starting business, marriage, work, talking, not talking, risking, driving, quitting your job there will always be advantages and disadvantages in everything in life.

As we always say a problem solved is a problem created no matter what. So there will always be good things created and bad things too created. With the rise of more coins and inflation, people are heavily looking for ways to make money with cryptocurrency which is highly backed up by blockchain technology.

The most known cryptocurrency in the world is bitcoin and one of the most transacted coins before ethereum.

 

advantages

1.easy to use and to open an account

        I know everyone reading this has once opened a bank account and you know what, the procedure is hectic. Opening a bank account takes several steps where you are asked several documents just to verify you.

Also accessing your funds in a different geographical location is a little bit hard where you have to also open another account for verification.

In the case of cryptocurrency you just need a device that is able to access the internet, you can create your wallet and use it wherever and whenever you want.

Just like the way you use the Mpesa it is the same with cryptocurrency, you just need an address from where or the person you want to send it to, and you are done with the transaction.

2.they are decentralized

Cryptocurrencies are compared to the Fiat currency. Fiat currency is the money that is issued by the government. 

The government is responsible for reprinting, hoarding, and more.

So this means that the paper money is produced by the government and the government controls everything and once the inflation increases you holding the Fiat cash will go down in value.

Cryptocurrencies on the other hand there are decentralized and not controlled by anyone. When the price goes up and you have severally crypto you also benefit from the rise.

The decrease or bearish of the price on your side you also get the lose at a specified period of time.

This is another benefit of crypto that no central authority can dictate the usage of the coins even if the network goes offline the system will continue to operate smoothly and stable.

 

3.low operation cost

If you compare the transactions of other offline and online methods of payment with crypto, crypto transactions are less expensive.

Although, in crypto, the cost of the transaction depends on the wallet from the wallet it cost a friend to every user.

Transferring crypto from one person to another there is no need to pay commissions and fees to banks and organizations. This does not mean cryptocurrencies are free for transactions.

Crypto charges a small amount of the transactions as a fee which has no much weight as compared to other ways of transactions like bank transfer, PayPal, or any other method.

4.you can do unlimited transactions

In the fiat world, there is a limit that one can transact at a time, and once the limit is achieved you have to wait until the next time.

For example, in a bank transaction, there is a certain amount that can be withdrawn from a specified or specific account until you follow a certain procedure.

In cryptocurrencies, you can pay using your wallet to anyone, anywhere, and for any amount.

The transaction cannot be controlled or prevented, so you can make transfers anywhere in the world wherever another user with a crypto wallet is located.

5.fast transactions

If you come to some ways of transactions like bank transfers it takes time before the transaction once done is completed.

For some banks, it takes like three days to seven days before the amount reflects into your account.

In cryptocurrency, you don’t need to wait a couple of days for your business to receive the money.

These coins are based on blockchain technology, where it removes delays, payment of fees, and a host of other third-party approval that might have been present.

6.they have pure transparency

In cryptocurrency, every transaction is recorded on blockchain technology and anyone can know who made the transaction and who received the coins with all the details recorded.

Through the power and the technology behind blockchain, it keeps the information about everything that happened in the block and transferred to every corner of the world.

7.they can be used as a mode of exchange

With fiat currency, one can use the fiat currency to measure the worth of a certain asset. The same can happen in the world of crypto where you can send the agreed amount of crypto as a medium of exchange and exchange whatever thing you might want to.

For example, lets you want to exchange for a car you can exchange the car with both the buyer or the seller have agreed to a certain amount of crypto that the buyer will send to the seller.

One of the companies that accept cryptocurrencies as a method of payment the Tesla which is owned by Elon Musk the crypto Guru.

 

8.highly secured

All your transactions will be secure as it is using cryptography. It is next to impossible for any person other than the owner of the wallet to make any payment from the wallet unless hacked.

9.they have peer to peer cryptocurrency network

Cryptocurrency does not have any master server to manage all transactions .exchange of information is between 2-3 or more software clients. They are all installed by users program-wallets that are part of the crypto network.

disadvantages

1.lack of knowledge

Most people are not aware of the cryptocurrency and how there operates and hence have negative thoughts about it. Other people term crypto as evil deals that may end up taking you to hell.

Lack of knowledge of cryptocurrency is leading many people to scammers who are just after your hard-earned money.

Lack of knowledge also will affect the transition from using different currencies in different countries to using one currency and that is the use of cryptocurrency.

Digital currency technology is somewhat complex and therefore one needs to be mindful of it before investing heavily into it.

 

2.highly volatile

In the financial markets or charts, there will always be fluctuations in price.

If you have ever seen charts in the forex market, you will see there will be periods of bullish and bearish at a certain period of time.

The price of cryptocurrencies is not always stable. If you have had some coins in a wallet you will note that sometimes the amount in dollars you left in your wallet will not be the same somedays.

You should never panic about this because this is just price testing some key levels.

 

3.you cannot be able to reverse them

Like any other method of payment like mobile transfer or any other method, it is easier to reverse the payment once sent to the wrong person through the help of the heads of the organization.

With cryptocurrency been decentralized once sent you can only request the other party to refund which is very hard to.

If your request is turned down then you just forget your money.

 

final thoughts

In every problem solved is another problem created~ anonymous

There are always pros and cons to everything in life and this is why you need to weigh both actions thoroughly before making a decision.

Cryptocurrencies are here because of making our day-to-day transactions easy now as time passes technology usage also getting a wide range as well.

Cryptocurrency is a young market and the young market is where big money-making opportunities lie.

Remember to make your own research before buying into anything and only invest what you are comfortable to lose, that way your crypto journey will be profitable and fun at the same time.

 

 

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