Although crypto has been here since almost a decade, the concept is unbeknownst to a vast majority of people all around the world. Given that it is an unconventional currency i.e. a virtual one, it is, in many ways, pretty similar to the act of exchanging your local currency in a foreign nation. These virtual currencies have their own particular features, specifications and communities on the internet, within which they operate and there are several hundreds of examples of crypto, Bitcoin, XRP, and Ethereum being the most prominent ones in terms of their market cap and mainstream adoption.
One fundamental thing about exchanging all forms of money and currencies are the trust which is shared between the parties in a transaction. There is a value and worth attached with all fiat currencies, such as the dollar or rupees, and that is due to the fact that since ages people can utilize these currencies in order to purchase goods and services.
Talking about this shared trust, the real question posed to us is whether we can put our trust in digital currencies by investing massive amounts that we have saved over so many years of life?
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Crypto are a digital asset which can be utilized as an investment tool, yielding high returns for us in the longer run. Also, these digital assets can be used to purchase goods and services, both online and in-store. In a nutshell, what happens is that you are required to purchase units of these virtual currencies, also referred to as ‘coins’ and ‘tokens’ through spending your local currency which could be any fiat e.g. rupees or dollars etcetera. Initially there was just one cryptocurrency, ‘Bitcoin’, which has ever since its inception been the leading crypto in the world. However, with the passage of time, several new digital currencies have emerged in the market, hundreds of them, among which besides Bitcoin, Ether, Bitcoin Cash, Litecoin, and Ripple have been the most successful ones so far.
Now we will proceed on to discussing a few noteworthy facts about these digital currencies which should be known by the masses before they indulge into the crypto market and spend huge chunks of their savings in buying these crypto. The purpose of this article is to give the readers a disclaimer about the major pros and cons of these crypto, so that they make a well-informed decision and do not regret anything later on. So without any further ado, the following is a list of three interesting facts about crypto that everyone should know beforehand:
It should be noted that with the great chances of earning very high returns on crypto investments comes the high risk in the shape of volatility in crypto prices. The best example to demonstrate volatility in crypto is the price volatility of Bitcoin during 2017, from going as high as $20,000 to dropping as low as $900, and in just a matter of days. It seems as if literally someone sneezes and the crypto values get shook. Therefore, crypto investments can prove to be a very risky game for the investors. It is clear though, that all investment options in the financial markets come with an underlying inherent base value of risk associated with that investment. However, one should always bypass the unnecessary risks, most importantly when the amount you are investing is hard-earned money. Our motto on this matter is that do not gamble with your long-term future.
A lot of stuff still requires to be figured out in the world of crypto, in terms of how they work etcetera. It is indeed strange how people do not even know the creator of the most successful crypto in the world today, Bitcoin. Satoshi Nakamoto is claimed to be the creator, however it is not a 100% fact. Also, in terms of the knowledge about crypto and the way it works is not too common in people, and just a few are equipped with it.
Given that no governmental or authoritative body can intervene in a crypto transaction, this gives people conducting shady and illegal operations and activities a great opportunity to fund their dealings privately without getting noticed. Also people who prefer to stay anonymous and dodge regulations from financial institutions such as the banks on their transactions also go for crypto. These people can be present anywhere such as the black markets or even the dark web. Even money laundering has been identified as a major issue even in this form of currency.
It should be clear that our take on this is not that crypto is only utilized by people in illegal activities and that no legal transaction involves crypto, but we are perhaps emphasizing on the fact that crypto enables people who wish to stay anonymous while conducting criminal transactions, hence being a perfect getaway for criminal activities.