Pros and Cons of buying Cryptocurrency

Cryptocurrency is a digital or virtual currency that is protected by a special type of encryption, making double-spending and counterfeiting highly improbable. Many cryptocurrencies use blockchain technology to create extremely complex networks. Cryptocurrencies are unique in the sense that by the they are not issued by any central authority, making them potentially impenetrable to government intervention or manipulation. Since Bitcoin launched in 2009, the cryptocurrency market has steadily grown, with estimates at a current value of over 1.8 billion dollars

Even though cryptocurrency has become more acceptable and in wider use in recent times, there are still scepticisms and wariness of both holders and investors in these digital currencies, and this is not unfounded. Notwithstanding its decentralized nature, cryptocurrency is prone to the same influences as any other currency. However, there are also some elements that are unique to it, like how more vulnerable it is to sudden rises and drops. In view of this, there is the need to analyse the pros and cons of crypto as this will help determine the decisions that prospective investors will take regarding them.

Pros:

• One advantage of cryptocurrency is that it has the potential to make it easier to move funds between two parties without the use of a trusted third party such as a bank or credit card provider. Instead, these transfers are protected by the use of public and private keys, as well as other incentive systems like as Proof of Work and Proof of Stake.
• Furthermore, because a user’s “wallet,” or account address, in cryptocurrency systems has a public key, while the private key is known only to the owner and is used to sign transactions, fund transfers are completed with low processing fees, allowing users to avoid the high fees charged by banks and financial institutions for wire transfers.