The Pros and Cons of Switching to Cryptocurrency in 2021

 The Pros and Cons of Switching to Cryptocurrency in 2021

Cryptocurrency has been in vogue in the industry for some now and the fact of the matter is that, the common man still lacks clear understanding of what cryptocurrencies are and how one can trade them for a profit. With that said, the global cryptocurrency market has been growing and the sector is set to grow at a CAGR of 6.18 percent during 2019 to 2024 to reach an estimated value of 1.40 billion US dollars. With the penetration of technology improving every year, and with more and more people entering the digital realm, these above-mentioned stats can even improve in the coming years. So, for people who are planning to invest on cryptocurrencies, it is important that you know the pros and cons before switching over to cryptocurrency.

Let’s begin with the major pros of using cryptocurrency

  • Ability to keep Utmost Anonymity: One of the biggest advantages of moving into cryptocurrency is the ability to keep absolute anonymity regarding your own personal details. Unlike other mediums, trading or investing in cryptocurrency is the perfect investment medium for those who are wary about giving up too much of their digital information. The rapid adoption of latest technologies and safety processes have made sure that the personal information of a cryptocurrency trader or investor is not stolen. This security feature and the ability to keep utmost anonymity is a big advantage that cryptocurrency has over other similar mediums.
     
  • 24/7 Accessibility: This is yet another useful feature that cryptocurrency can offer and if you are an investor or trader that needs to make quick and spontaneous decisions regardless of the time, then the 24/7 accessibility of cryptocurrency will be what attracts you to be a cryptocurrency investor or trader. This will help individuals to not be chained to time constraints and take investment or trading decisions freely.
     
  • Better Transparency:Another big plus for cryptocurrency is the fact that it offers utmost transparency and this allows for individuals to invest and trade cryptocurrencies without having to worry about the authenticity of it. Even though, the anonymity of the person who invests or trades cryptocurrency is ensured, the transactions are all stored in an open ledger which is crucial to avoid any fraud or future complications regarding a trade.

With that said, the global cryptocurrency market has been growing and the sector is set to grow at a CAGR of 6.18 percent during 2019 to 2024 to reach an estimated value of 1.40 billion US dollars

Like the pros, there are some concerning cons for cryptocurrency investment and trading and some of the most important ones are mentioned below.

  • Difficulty to Comprehend: As mentioned before, even though cryptocurrency has been present in the industry for some time now, the common man hasn’t been properly exposed to its concept and most of them are lacking proper knowledge about cryptocurrency as a concept in general and how can they invest in cryptocurrency and make money from that. So, people who aren’t tech-savvy might face some difficulties at least during the initial days of switching over to cryptocurrency.
     
  • Facing the Market Fluctuations:The fact of the matter is that, market conditions can never be predicted to 100 percent accuracy and when it comes to cryptocurrencies, most people are just investing in it and waiting for unprecedented market conditions to work in their favour. So, if you are someone who is thinking about investing in cryptocurrency, then do a quick research and get a basic outline of how things work in the market. 
     
  • Zero Security when Loss Occurs:Another big drawback of cryptocurrency is the fact that there is little to no security when you incur loss. So, make sure that you are careful with your investments and by treating cryptocurrency investments like any other investment, you will have a better chance of avoiding unnecessary losses.

As technology advances and with more people acquiring digital literacy, the amount of people investing and trading in cryptocurrency is going to increase and for those people it is important to get a clear picture of what are the advantages and disadvantages of switching over to cryptocurrency to avoid unnecessary losses. 

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