Cryptocurrency is increasing The curiosity of investors throughout the world no matter whether they understand it properly or not. High return on investment is the main reason why people are showing interest in the cryptocurrency trade. Putting your money at risk without understanding the basic concept of this virtual currency is not a wise approach. Many people lose their hard-earned money in Bitcoin ponzi schemes because of the lack of knowledge. If you don’t want to become one of those investors, it is advisable to enhance some knowledge. The management and circulation of cryptocurrency with blockchain is a complex procedure. Still, we will try to elaborate on its all aspects in simplified language. Please scroll down to dive deeper.
Cryptocurrency Technical Analysis
While analysing cryptocurrency technically, we need to understand that it is a virtual currency that has no physical existence. All transactions made in cryptocurrency are recorded in the digital ledger of the blockchain. Data entered in blockchain remains safe from the most dangerous cybersecurity threats. Currently, blockchain is the safest internet technology ever. It is an open-source technology so everyone can gain access without requiring any special permission. More than 4000 cryptocurrencies are existing in this world right now because of the increasing trust among people. Below is a list of some pros and cons related to cryptocurrency you should know.
Pros
- Decentralized
Any kind of trade done through cryptocurrency is decentralized. It means, there is no involvement of centralised institutions like finance agencies and banks. Nobody is there to monitor your financial activities. Transactions done through blockchain remain anonymous. People can buy products and services with this cryptocurrency without revealing account details.
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- Highly secure and transparent
As mentioned above, blockchain is currently the most robust technology e available on the internet. Along with providing high level security, it also maintains adequate transparency. Although people cannot find the personal information of sender and receiver but the transaction remains visible on blockchain to everyone. A slight change in the behaviour of the transaction is notified to everyone. Even if someone tries to manipulate the data, the entire blockchain of that particular transaction gets corrupted.
- No theft risk
It is a virtual currency so the risk of theft automatically neutralizes. There is no need to carry hard money or even your credit cards. It just takes a private key or QR code to make a transaction.
- Same value globally
Whether you are looking in Europe or Asia, the value of cryptocurrency remains the same everywhere. Moreover, the transaction charges applicable for international sale purchase are also negligible as compared to the conventional money exchangers.
Cons
- Anonymity increases black money
After doing cryptocurrency technical analysis, we understand that the anonymity of users also increases the list of Black money circulation. Nobody knows who is making transactions to whom. Only the public keys of both parties remain visible on the internet.
- Private key cannot be recovered
Once you lose your private key of making transactions, the entire amount of cryptocurrency will go worthless. It will permanently lock in the blockchain. A person who lost his 7500 Bitcoins after throwing the hard drive accidentally in the trash.
- Highly volatile
The value of cryptocurrencies fluctuates more frequently with a substantial margin as compared to the conventional currencies. Just a small statement of business giants can drop or raise the value. For instance, Elon Musk gave a statement about not accepting cryptocurrency for his Tesla cars sale. After this statement, the value of Bitcoin drastically fell down. Recently, he gave another statement that Tesla could accept cryptocurrency and it increased the value of Bitcoin by 10%.
Do some research on the most reliable crypto exchanges currently working in your area. Stay in touch with all the latest news of the cryptocurrency market. It will help in choosing the most reliable currency for investment.
