Advantages and Disadvantages of cryptocurrency (2024)

Cryptocurrency is highly volatile and also gives a quick return on investment. So many still remain in the pool of doubt, which is why we need to know the advantages and disadvantages of cryptocurrency.

This post will make necessary clarification to this two-sided coin.

What are Cryptocurrencies?

Cryptocurrencies are digital currencies that are not backed by any central bank, but rather are created and traded through open-source software.

This kind of trading allows you to send and receive money semi-anonymously thanks to a decentralized network of computers connected to each other, without intermediaries, banks, central bodies, or anything else. It’s like an e-wallet that may be created in blockchain technology to store, track, and spend digital money.

In the near future, we will see cryptos used in various aspects of life, transforming the way we see them. This coin has a lot of potential; hence, it will become the most used means of payment in the world. Blockchain is the foundation on which cryptocurrencies are built. Here are a myriad of ways cryptocurrencies will improve our lives in 2024 and beyond.

Advantages of Crypto Coins

1. Simplified financial transactions

Cryptos are having a huge impact on global finance. Cross-border payments are quite complex when it comes to today’s banking infrastructure.

Cryptocurrencies make it easier and stress-free to receive and send money internationally. Without a requirement for financial institutions or correspondent banks.

2. Potential Investment stock

The basic rule of stock investment is to buy cheap and sell high, so you can make a profit when the market is rising. And the unstable crypto price makes it a good stock to invest in

On the other hand, in the case of Bitcoin investment, it is possible to make a profit even in a declining market by using leveraged trading.

3. Reduction of the ecological footprint

cryptos do not require printing in the form of a banknote or physical currency, consequently, the ecological impact would also be significantly reduced. they are basically universal.

Therefore, there are no exchange fees, you can use it, and it is done in seconds. Especially, in some parts of the world where cash has been abused.

4. Accessible to everyone one

One of the benefits of cryptos is that you can make payments with just your smartphone without having to bring your wallet or card case.

The fact that you don’t have to carry cash or a bank card around makes it even more secure from thieves. It is compared with gold by many because of its evergreen features. A medium for unrestricted traction around the globe.

5. Low fees for an international transfer

However, the best thing about cryptocurrency is that you don’t have to worry about exchanging money all over the world.

Currently, when traveling abroad or on a business trip, it is necessary to go to a local airport, bank, or money changer to exchange for local currency or make a foreign currency payment with a credit card.

However, there is a problem there is a fee (spread) that is not cheap for currency exchange, and to be honest, the exchange rate is too much and difficult to understand. It also takes time to exchange money.

However,

Purchase on E-commerce sites around the world is made easy.

It is possible to make payments at ECommerce sites around the world because of its global acceptability.

For example, it is possible to purchase clothes at an online shop in Vietnam while in Canada, but when making a credit card payment, it is denominated in dollars.

6. Fast Crypto Transaction

Streamlining of crypto transactions and processes can occur in an extremely short time, if not immediately, and in a very simple way regardless of distance; whereas banks can take hours, if not days, to complete an international transaction, local transactions can sometimes take hours.

Freelancers are making money from other countries and got paid with BTC.

7. Peer-to-Peer Transactions

Cryptos have an open, peer-to-peer, and secure system. Bitcoin and other altcoins allow exchanging value and skills over the web with no third party and provide its user’s access to their balance through a password referred to as a personal key.

It’s private and secure. There are no exchange values or third-party involvements.

advantages and disadvantages of cryptocurrency — source

Disadvantage of cryptocurrency

1. Volatility

The Price and value of cryptocurrencies can fluctuate significantly, it creates inconsistency that leads to panic in the heart of a potential investor.

2. Cybersecurity Challenges

Since Cryptocurrency is a product of digital technology, it will be vulnerable to cybersecurity breaches and attacks. Hackers will always take advantage of any loophole to reap innocent people of their hard-earned coins.

Scammers frequently make use of social media platforms like Facebook, Telegram, Instagram, and Twitter to lure people into making these investments.

3. Not Regulated

Since the Crypto market is not regulated by the government, businesses and investments might not be protected.

4. Country Policies

Cryptocurrency has been banned in some countries based on the economic concerns of such countries. Trading cryptos has been tagged as illegal in countries like China, Bangladesh, Vietnam, and Nigeria among others.

Crypto Community Manager

Crypto community managers are needed to spread awareness, develop communities, organize events, and execute campaigns for various crypto coins.

As well as handle communication across social media channels like Facebook and Twitter. These days, cryptocurrency is becoming an increasingly popular way to make money.

One of the biggest advantages of crypto is that it creates several opportunities along its value chain. Crypto community managers earn $200 monthly on average. Interested in making this your career? Read on to find out how you can become a crypto community manager!

Is Crypto Dangerous?

Not all E-commerce sites accept crypto payments, but it is expected to increase. In the future, cryptocurrency will make shopping at overseas E-commerce stores cheaper and easier.

However,

With the advent of cryptos, people get the freedom to exchange value without intermediaries, which translates to greater control of funds and lower fees.

Other Crypto Tips

Frequently Asked Questions

Is cryptocurrency better than real money?

Cryptos are faster, cheaper, and safer. Cash is controlled by banks, while bitcoin has owners. The advantages of Bitcoin and other altcoins at large are more, just mention a few.

What countries have banned cryptocurrency?

The following countries have placed an absolute ban on cryptos
Tunisia, Algeria, Bangladesh, Iraq, Morocco, Nepal, Qatar, and Egypt

What is the cryptocurrency market cap?

Cryptocurrencies have grown dramatically over the last few years, with the total market cap of all cryptocurrencies being around $1.63 trillion as of December 2021 according to indiatimes.

When was Cryptocurrency Invented?

Crypto was first invented back in 2009 by a man who wrote under the pseudonym, Satoshi Nakamoto.

How fast can we transact with cryptos?

Cryptocurrencies can help us do online shopping at the speed of light.