Introduction
Cryptocurrency has seen an enormous rise in the market recently. It is a form of online payment which can be exchanged for goods and services. There are many companies who issued their own coins or tokens which can only be traded in that particular company which released them. Cryptocurrency works using a technology which is known as blockchain. Blockchain is a technology which is spread across computers and maintains records of transactions. The main appeal of this technology is its security.
Bitcoin, the first blockchain based cryptocurrency, was created in 2009 by Satoshi Nakamoto. From then it has been the most popular and most valued cryptocurrency. Currently there are more than 10,000 different coins which are being traded publicly. Nowadays people are racing to buy crypto because they think coins like Bitcoin, Ethereum and Dogecoin are the currencies of future. But for this to happen, they need to be stable, for the traders and merchants to determine a fair price for their goods and services. Bitcoin, the face of cryptocurrency holds almost 50% of the total value of cryptocurrency. Bitcoin is also the most traded coin in this world.
People can trade different types of cryptocurrencies with the help of online brokers like Coinbase, Robinhood, Webull, TradeStation, etc. Cryptocurrency has hit its all time high of 2.2 trillion dollars in April and currently has a value of more than 1.4 trillion dollars with Bitcoin holding a value of more than 630 trillion dollars. Many of the big name investors see cryptocurrency as the future but also tell that it is highly profitable and also highly risky because of its instability.
Advantages of Cryptocurrency
Cryptos hold the promise for making the transaction of funds easier between two people directly without the need of a third person such as banks, etc. They are also very secure because of the technology used in it. The transfers are completed with minimal processing fee unlike the banks. It allows the users to avoid the high processing fees charged by the banks.
Disadvantages of Cryptocurrency
Cryptocurrencies are very private and anonymous which make them a host for many illegal activities such as money laundering and tax evasion. Coins like Bitcoin whose forensic analysis have helped the government track and prosecute criminals. But there are many coins like Dash, Zcash which are very private and very difficult to trace.
Investment in Cryptocurrency
Cryptos can be used as a source for either as quick income or for long term holdings, as it is very unstable. Cryptocurrencies offer high risk but high reward. People with experience and people who can read the markets clearly can reap huge amounts of profits from this. There are many coins or tokens like Tether which are suitable for long term holdings and coins like Bitcoin and Ethereum are suitable for making quick profits.
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