Cryptocurrency.One of the most popular words of 2017 and there is a reason why.Few people know, but cryptocurrencies emerged as a side product of another invention. Satoshi Nakamoto, the unknown inventor of Bitcoin, the first and still most important cryptocurrency, never intended to invent a currency.
The good things
Digital currencies are working with the help of the blockchain technology , which represents the backbone of digital currency, and it has the potential to disrupt financial services by reducing the cost and way of financial transactions, while also augmenting transparency.Blockchain technology can be used not only for financial purposes but also in health, government, travel, education sectors as well like previously stated in one of the articles that I have posted.
One of the best things that cryptocurrency allows is the fact that transactions can't be reversed and there can't be any charge backs,also not to mention the anonymity that is provided with the cryptocurrency.One other benefit is how cryptocurrency is not bound by exchange rates, interest rates or transaction charges. In addition, digital currency transactions take place at the same speed, regardless of where the sender and receiver are located and on top of that you are the owner of your money since there is no bank involved.
The Bad Things - Risks
The crypto world isn't without risks.Price volatility and regulatory intervention are few of the things that we should consider before investing in a certain cryptocurrency. Retail investors should expect volatility and significant price swings as markets develop. While cryptocurrencies have experienced explosive growth, they currently remain a relatively small part of the global financial ecosystem.
List of potential problems at this moment :
- Scalability problems
- Legalization of cryptocurrencies
- Changing protocol is a very lengthy and complex procedure
- Adoption is not one-day thing
- Hacks can and will inevitable happen, but that’s why blockchains are always updated to address possible attacks. Even Bitcoin had its moment when hacked got billions of new bitcoins mined, but that can and will be fixed by the community.
Recommendations
Considering the risks and problems that the crypto world is experiencing its really important to know what you are doing, do the research and never rush yourself into situations that you can't get out of.
Here are few recommendations :
- Don't trust everyone. Trust few !
- Keep your money off exchanges.
- Assume most of the computing units you are working off of are already compromised in some way or will be soon.
- Encryption is a must on files and folders where you keep your private keys
- You have a possibility to use hardware / offline wallets ? USE THEM!
Conclusion
Can you make good money with cryptocurrencies ? It really doesn't matter if you hold or if you trade , you should always have in mind that it's not as easy as it seems and anything could happen in crypto world.Be aware of the risks and problems that the crypto world is experiencing and play it smart.Look for the right moment and take action and the most important is NEVER INVEST SOMETHING THAT YOU CAN'T AFFORD TO LOSE.
Thanks for reading.Your support means a lot !
If you wanna see other articles similar to this one , you should visit :
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Sources:
Entrepreneur
Medium
HackerNoon
