5 Good and Bad Things To Know Before Investing In Cryptocurrency
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In a world as complicated as the one of cryptocurrency, you can’t get far without doing a bit of research on the topics that are the most essential to the field. You may bluff your way through a few things, but it’s never a great idea to be underprepared for a new system, especially if there’s real money involved. Better safe rather than sorry, as the proverb goes.
If you’re not in the mood for an hour long lecture on how to make the most of your cryptocurrency, fear not, my fellow homines otiosi; you can read this article to get a crash course on what to look out for in every purchase when dealing with the crypto-world. Though if you really want the best experience, look up our other articles here to really get the low-down on this marvellous field of cryptocurrency.
Well, there is a lot of good and, to be very honest, a lot of bad. Of course, ‘good’ and ‘bad’ are completely subjective terms, but let’s just say that if something causes harm to the user, it’s bad. If it benefits the user, without hurting anyone else, it’s good. And if it is good for some and bad for some, let’s ignore it.
With that out of the way, let’s get started on our work.
The best part of cryptocurrency? That’s debatable. I mean, there is a lot from which to choose, and in the end, it depends from person to person.
There are a lot of things, however, that most people, the majority, will consider a positive point when choosing to invest in a blockchain. If this should cause other issues, we’ll try and discuss them later.
We can narrow the best into a few mainstream appeals, but keep in mind that there is a lot more out there than the points given here. And if you disagree, feel free to let us know! Let’s get started.
Investing in cryptocurrency, in the long run, actually is profitable. Sure, if you bought Bitcoin last week you probably will be dissatisfied by the general fall in its price, but if you bought it eight years ago, you could be in the Bahamas right now, drinking martinis and enjoying life. Overall, statistical data shows that within a short time, cryptocurrency companies can appreciate in value like no other in the market. (Although weapons manufacturers may come close: Lockheed Martin has enjoyed quite the sales boost since 2010).
Cryptocurrency is the most secure store of money ever devised. Thanks to the blockchain, it is almost impossible to hack or rob someone. Technically it is possible, of course, but only as likely as winning the lottery… three times in a row… on the same day.
If you don’t believe me, you can read our article on the blockchain to better understand the way the system works. But if you don’t want to put in the effort, you’re going to have to take my word for it. In many cases, your wallet, which is your personal “account” (though the term evokes a gentle irony as “accounts” belong to banks, and the blockchain is a replacement to banks) can be more secure than the company providing you a service on the blockchain.
The blockchain and accessibility go hand in hand. Because of their non-physical nature, cryptocurrencies can be transacted in various ways that fiat can never undergo due to physical limitations. The Amon card, for example, allows you to convert one currency to another within a few clicks or taps on your screen. You can even connect their virtual debit card to your smart device and enjoy money management of the finest degree on the go. You can read more on that here.
Sadly, not everything is as perfect as the advertisements tell you. We don’t live in a crypto-utopia, a ‘cryptopia’, if you will, and the cryptocurrency industry is faced by a plethora of minor issues and a few serious ones.
While I’m by no means saying that all hope is lost, or “abandon ship”, I will admit that some of the negatives you may have heard about cryptocurrency do have some actual weight in real life.
For example, the crypto-world does have a major issue with market instability. Prices rise and fall with no apparent trends and it’s a difficult thing to cope with. Of course, all stock markets have the same issues, but not to the extent of cryptocurrency. On the plus side, Amon is working to solve this issue by the use of its great A.I., which will aim to reduce price instability. Find out more about it here.
Cryptocurrency doesn’t answer to any authority, and this can cause serious issues. Take the story of Matthew Moody. Matthew was in the blockchain business back in 2013 who died tragically in a plane crash. The saddest part is that his father has spent the last five years trying to unearth Matthew’s assets with no success. Nothing can be done. The blockchain doesn’t have any positions of authority to whom an appeal can be made. Matthew’s mined Bitcoin will forever lie unused, harming Bitcoin and his poor family.
Scams get us riled up like nothing else. And again, wherever money is involved things get really serious. Scamming online is bad enough, but mostly it’s easy to detect a scam and avoid it. If not, there’s usually someone to complain to and at least prevent the problem from happening to anyone else.
But what if the scam is technically legal? I am referring t ‘pump and dump’ schemes, held at I.C.O.s where entrepreneurs bloat the price of a crypto coin to incredible heights. This interests the inexperienced, and they invest massively into the scheme. After this point, the entrepreneurs cash out, dropping the coin’s value to virtually nothing, making out like bandits while the average person is left with nothing but useless coins.
On the whole, there is a lot of good and a lot of bad in the crypto-world, but with the right knowledge and a bit of reliable information from sources like our blog and others, you can’t really go wrong. And always be careful with money online, because caution is half a mistake avoided.