Before we dive into why crypto is essential and is it safe? we must start by knowing what it is actually.
Cryptocurrency or crypto is a non-physical, digital and decentralized currency that is issued by private systems and still remains out of the sphere of the government. This is a friendly system which lets anyone from anywhere to send and receive payments.
Now let’s discuss about whether or not crypto is a safe medium for investment. Let’s take an example, Priya need to store her cryptocurrency in a digital wallet. There were at least 4,000 different cryptocurrencies worldwide such as markets giants like Bitcoin, Ethereum, Litecoin and Dogecoin. Most of the interest in these chaotic currencies is to trade for profit, with investors/speculators at times driving prices upward.
Cryptocurrencies usually work by using blockchain technology which is a decentralized technology spread all over many computer systems that handles and records transactions. An important section of this appeal is its security. The transactions cannot be changed or eliminated and are hard for hackers to mess with. Also, transactions and the blockchain usually gets updated automatically. So, if Priya wants to trade in crypto she must open a crypto trading account on cryptocurrency exchange. A cryptocurrency exchange such as Coinbase can help in trading cryptocurrency in different currency and also gives wallet services. This performs as a broker and conducts transactions between the buyers and sellers, while on the other hand their main source of revenue are transaction fees and commission. As soon as the account is opened and KYC formalities are finished. Priya can deposit money in the cryptocurrency exchange through card transactions or direct bank transfers to buy cryptocurrencies against a fee.
Even though crypto trading is the present craze it might also protect potential high returns, Priya must realize that cryptocurrency is an exceptional attribute and a volatile buy. The market is still in its beginning stage. Investing in something new comes with its own challenges so in order to succeed she must be ready to face the music. If her investment portfolio or risk appetite can’t handle that then crypto isn’t the right choice for her.