What are Cryptocurrencies?
Cryptocurrencies are digital assets that use cryptography to secure their transactions. They allow users to bypass banks to make secure payments and store money and are run on public ledgers used to record transactions called blockchain. They are essentially an online currency.
What are the benefits of Cryptocurrencies?
One of the most noticeable benefits of cryptocurrencies is their accessibility. If you can connect to the internet you can access the cryptocurrency market. It is not controlled by a government or bank and can be spent freely and without any fees. The possibilities are huge with cryptocurrencies, provided you understand how to trade them.
In terms of trading in cryptocurrencies, what has been most attractive to investors has been the huge amount of growth they – especially Bitcoin – have experienced in recent years. It is this volatility that has made investing in them so popular.
What are the disadvantages of Cryptocurrencies?
As a casual observer it can be easy to think of cryptocurrencies like Bitcoin as just continuously increasing in value. However, it is important to remember just how new these cryptocurrencies are. There simply isn’t the data to predict how these markets will play out, therefore there is considerably more risk associated with them.
Cryptocurrencies are currently unregulated, part of which makes them so popular, however should governments decide to regulate them, this could seriously impact their price.
Overall, the main concerns with Cryptocurrencies is their ‘unknown’ quality. The technology is still emerging and it is quite possible that it might fail – we just don’t know.
As with all financial trading it is essential that you go into Cryptocurrency Trading with your eyes open. It is a complicated market and you must understand as much of it as you can before you start trading. Set yourself clear goals and strategies to follow and try to avoid any emotional trading and set up insurances to safeguard yourself from any risks. If you do your research and stick to a plan there is no reason that trading in cryptocurrencies can be as lucrative for you as it has been for others.
Getting started is easy. Once you have opened a trading account with us, you will have access to all of our online services, including a massive collection of eBooks, video course and live webinars, as well as the support of one of our top market experts, available to you 24/7.