Cryptocurrency is it safe? Essay : Cryptocurrency is a digitized form of currency, which is exchanged or transacted through several different apps and software’s online, wherein huge databases of individuals are stored on these platforms.
These currencies are not regulated by any Government authorities of any regulatory bodies, thereby making them very unsafe and posing huge risks in acquiring such currencies. However, these currencies are now been brought under the financial authorities to ensure safe trading of these currencies.
The first crypto currency introduced was Bitcoin, which till today is the most used and valuable currency in the world. After the Bitcoin several other cryptocurrencies were introduced for trading like Litecoin, Ethereum, Dogecoin, etc. At the beginning the Bitcoin was highest valued and most exchanged currencies making these crypto users make huge profits through the trading of Bitcoin.
Cryptocurrency has several advantages like easier funds transfer between parties and exchanges being made very easy, even the process of registration through apps and software’s are being made online with ease. The charges on such transactions are also very minimal as compared other normal currency trading and banking transactions. Safe online wallets are been enabled to providing users with security key to enhance the safety of their trading and secure these currencies in these wallets. The processing and registration processing comes with a very minimal fee, making it easier for users to complete the online registration process with minimum charges.
Cryptocurrency currency is proving to have many disadvantages like due to its hidden nature, make its easier for persons to evade tax on these transactions and even illegal activities like money laundering etc. Payments once made into theseapps and portals they cannot be reversed but can only be exchanged or traded for other currencies thus the funds once traded into these currencies makes the irreversible and unsafe. There is a possibility of these currencies being hacked or accounts being hacked due to the large database of customers being stored onto these apps and software’s, making it easier for hackers to access customer information and hacking into their accounts, thus again making them unsafe. Cryptocurrencies have proved to be unsafe due to its very volatile nature as the value of these currencies entirely depends on market conditions, thus posing huge risks to traders against losses. These currencies have limited use, as they cannot be used for most physical purchases, but only digital purchases.
Cryptocurrencies have expanded, wherein loads of new currencies have been introduced for trading, some of these currencies are being purchased at a very minimal price, thus making it easier for trading. However, Crypto currencies has its own disadvantages, these currencies need to be regulated through authorized mediums thus making them safer for use.
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