Should You Take A Plunge Into The World Of Crypto In 2022? Have A Look At A Few Advantages And Disadvantages Of Cryptocurrency
Over time, the use of digital assets has increased significantly around the world. In the age of digitization, more and more crypto enthusiasts are willing to invest in cryptocurrencies.
However, should you start your investment journey and trading in the world of crypto? With the new crypto-concerning regulations rolled out by the Indian government, people’s inclination towards digital assets has increased. This has resulted in existing crypto enthusiasts diversifying their investments and new investors entering the crypto market.
If you are still on the fence about getting on the bandwagon of digital assets, here are some of the key advantages and disadvantages of cryptocurrency:
Major Benefits Of Cryptocurrency
Here are some important reasons why you should start using cryptocurrency right away:
- No Security Threats
If you are someone who is apprehensive about the security of your financial transactions, you can rest assured that cryptocurrencies would provide you with high security. The blockchain technology used for carrying out crypto transactions ensures the complete security of your valuable data. The decentralized infrastructure keeps track of every transaction and makes it almost impossible for even the best hackers to breach security. Once a transaction is recorded on the blockchain, it stays undisturbed forever.
- Eliminating Intermediaries
Traditional financial transactions often involve intermediaries for processing them. This requires you to have faith in these intermediaries while sending or receiving money. Cryptocurrencies eliminate the need for such intermediaries and make your transactions transparent. These digital assets can be viewed by anyone from anywhere without getting third parties involved in the transactions.
- The Market Is Always Open
One of the biggest advantages of cryptocurrency is that the digital currency market is always open. Here, the coins are mined, and transactions are recorded 24/7. Whether you are willing to buy, sell, or trade crypto, you do not need to wait for the markets to open. The market is always up and running for you to deal in preferred digital assets.
- Going Beyond National Inflation
When you use legal tenders belonging to your country, your transactions get affected by the ongoing economic conditions within your country, especially inflation. Cryptocurrencies and their prices are regulated by global demand and supply, allowing you to go beyond the domestic economic environment. This makes people dealing in cryptocurrencies indifferent to inflation to a great extent.
- Hassle-free Conversions
Cryptocurrencies can be bought using a plethora of different national currencies across the world. Once bought, they can be converted into different currencies to make payments without unnecessary complications. If you are a crypto holder in India and are willing to make a payment in USD, you can convert your cryptocurrency almost immediately and make the payment right away.
Some Drawbacks Of Cryptocurrency
Despite having a range of benefits, cryptocurrencies are not devoid of drawbacks. Here are some important considerations to keep in mind before you venture into the crypto market:
- It Can Go Over Your Head!
One of the biggest disadvantages of cryptocurrency is that it is difficult to be fully understood by everyone. It is a relatively new invention and requires you to be digitally savvy to deal in crypto. If you are not well-versed with the basics of blockchain and cryptocurrency, it may get difficult for you to wrap your head around the same. It is, therefore, always advisable to read up about the new trend and upgrade your knowledge before you start your crypto journey.
- Surviving In A Volatile Environment
If you are willing to deal in crypto, you should be prepared to survive in a volatile and unpredictable environment. While the price of your cryptocurrency can skyrocket and give you staggering returns, it can also crash to terrifying lows and incur losses. The key to surviving in the crypto market is not taking unreasonable risks and aiming for stable returns.
- No Cancellations And Refunds
Unlike many conventional transactions, cryptocurrencies do not provide users with the benefits of cancellation and refund. If there is a misunderstanding, mistake, or dispute in making payments, the amount sent cannot be recovered by the sender quickly. This aspect can be used by scammers to misguide and cheat newbies. It is, therefore, crucial to be alert and precise while using your cryptocurrency.
Start Your Crypto Journey With Zebpay
If you have been hearing that cryptocurrency cannot be used for making long-term investments, think again! Now that you are well-versed with the benefits of using cryptocurrency and the risks you may have to take for doing so, just venture into the world of crypto with ZebPay. We guide you every step of the way and help you buy, sell, and trade digital assets on a centralized platform. Whether you are a crypto enthusiast or a newbie willing to explore the new trend, ZebPay allows you to start crypto trading with an amount as low as ₹100.