Cryptocurrency is among the hottest topics of current times because of its high returns. Everyone is getting curious to understand how this system works and how to invest in it safely. This virtual currency was introduced in 2009 in the form of Bitcoin with ) value. Right now, 1 bitcoin stands against 40,000 USD. Right now, more than 4000 different cryptocurrencies are existing and their number is continuously increasing.
In order to manage the transactions of cryptocurrency, blockchain was introduced. Along with cryptocurrency management, this digital ledger is helpful in making the internet safer from all aspects. However, we are particularly focusing on the cryptocurrency technical analysis in this article.
Let’s understand its pros and cons of cryptocurrency in detail:
Advantages Of Cryptocurrency
1) Fast Transactions
For international transactions, nothing can beat the speed of cryptocurrency right now. It works on a decentralized system that doesn’t require the approval of any financial institutions such as the banking system. Instead of hours and days, it takes just a few minutes to reflect the cryptocurrency amount in your digital wallet.
2) Robust Security
Right now, no other Technology can provide better security as compared to the blockchain. What data is recorded in the blocks of this digital ledger, it cannot be manipulated. If someone tries to manipulate the figures, it will be visible to all the nodes connected in that particular chain.
3) Same Value Globally
There is a very complicated system of Currency value distribution in the conventional money exchange. For instance, the value of USD varies from country to country. Cryptocurrency has nothing to do with such variation. no matter from where you are making a transaction, the value of a bitcoin, Ethereum or Satoshi will always remain the same. You can easily make transactions from any corner of the world at nominal transaction charges.
4) High Level Of Privacy
Privacy is the main factor why people are getting so much attracted towards the top currency. As we mentioned above, it is a decentralized digital currency without the monitoring of any financial institution. Transactions can be made with the help of public and private keys only. The keys are encrypted with 64bit security. While making a transaction, only the public key remains visible to the people. It helps in keeping your transactions anonymous.
Some Drawbacks To Consider
1) No Backup Recovery
As mentioned above, cryptocurrency transactions are made with the help of public and private keys only. If you lose your private key, all the money will be Permanently locked in the wallet. There is no way to recover it back.
2) Risk Of Black Money Transfer
While doing transactions with cryptocurrency, the risk of Black Money transfer also remains hai. along with maintaining the privacy of a person, it also increases the chances of circulating black money without any trace. blockchain is a highly secure digital ledger that keeps every transaction anonymous.
3) Highly Volatile
While doing cryptocurrency technical analysis, never forget that it is highly volatile. Instead of gradual ups and downs of conventional currency, the cryptocurrency drastically rises up and falls down overnight. Even just a single statement of big cryptocurrency holders can drastically fluctuate the value
Before investing in a cryptocurrency, do some research online to make sure that it is legal in your country. Also, put your money only in reliable crypto exchanges because the cryptocurrency ponzi scheme are fooling many investors nowadays.