Cryptocurrency has been a hot topic in the last few years, completing changing the online world. If you’re looking to invest, it’s crucial that you learn all the facts first. This way, you can decide if digital currency really is the best choice for your portfolio. In this article, we’ll discuss the pros and cons to help you make a decision. Let’s get started.
Pro: Easy and fast transfers
Since there is no third-party involved with transactions, transferring cryptocurrency is quick and easy. You can buy bitcoin in Mexico and trade it across the globe in an instant. This convenience is one of the most valuable advantages, turning thousands to consider this investment method.
One of the main disadvantages of digital currency is its high volatility. While you do have the ability to make a large amount of money, in a short time, you can also lose it just as quickly. The price of coins can change in an instant, so you can never really estimate how much it will be worth it. It’s a high-risk system, which is what turns many away.
Identity theft is a common occurrence when buying and purchasing goods online. However, cryptocurrency allows an individual to transfer anonymously, eliminating any potential risks of fraud. There is no need to enter all your personal information, making the process quick and safe.
Con: Hacker Risks
The online world is a very big place, and if you don’t take proper precautions, you can lose your digital currencies instantly. Hackers are coming up with new ways to access your funds, which is why it’s essential to use a digital wallet. On top of this, there are also many bitcoin scams you need to learn about so that you don’t get taken advantage of. If you do get hacked, there aren’t many support options to back you up, since there is no third-party involvement.
Pro: You can start small
While some people believe you need to invest a substantial portion of your income into cryptocurrency, that isn’t the case. You can purchase as little or as large amounts as you want. This makes it great for those looking for a low-income investment option. However, like most things, the more you put in, the more you will make in the long run.
Con: It’s difficult to understand
Lastly, one of the main reasons why people don’t want to invest in the digital currency is because it’s difficult to understand at first. For those that aren’t tech-savvy, talk about bitcoin mining, and blockchain can be quite confusing. This then makes them choose much more traditional investment methods, over anything involving technology.
When considering all of the above, the number of advantages and disadvantages appears to cancel out one other. While cryptocurrency certainly is volatile, it does offer high returns, if you are smart with your decisions. However, at the end of the day, it ultimately depends on the level of risk, you are willing to take, and if you want a unique way to diversify your portfolio.