Cryptocurrency is a digital or virtual currency that uses cryptography as its security, thus enabling it to be free from counterfeiting. The very defining feature of cryptocurrency is that it is not issued by any central authority which makes it immune to government interference. There are thousands of variants in cryptocurrency today, Bitcoin being the most popular one, and each variant offers a different function or specification.
While a lot has been said about the alluring qualities of this new form, the question of its safety as an investment has also been posed in opposition. Many trade experts feel the currency to be unregulated and untested with some even calling it to be a bubble. With claims of cryptocurrency being all set to disrupt the conventional stock market, we at MAXX Markets believe that it is perhaps to shed more light on the matter and dissect it for a better perspective.
How does Cryptocurrency function?
To begin the analysis, it is important to understand how cryptocurrency works. Cryptocurrency, in the most generic sense, is a digital currency that uses the blockchain (a public ledger that’s digital) technology to record all the transactions made. Every process, along the way, is secured by cryptography and there are no middlemen like the bank involved.
In short, as a mode of transaction, there’s no intervention and it occurs only between peers using cryptocurrency wallets. It is decentralized which would mean that an algorithm and users control the currency and not any central agency or government. If you want to trade the crypto-currencies safely and smoothly then you must definitely opt B-Finance.
The rise of Cryptocurrency
If one were to believe the internet, right from small businesses to multinational giants talk about leveraging the new trend and perhaps changing the course of things. What was once part of a dark web, a seemingly grim and evil place to come from, Cryptocurrency has got the attention of many across the globe. With many advantages such as decentralization, recognition at universal level, lower transaction fee (if any) etc. that come along, makes it a serious force to reckon with. Cryptocurrency has risen up the ranks and has become a unique instrument in the investment world.
Cryptocurrency v/s Stocks
Addressing the main issue of the topic, it is important to realize that though cryptocurrency shares many characteristics with traditional currencies, it comes with a lot of baggage and uncertainty. While there are huge of number of merits attached to the concept, there’s also ambiguity that needs to be cleared. The growing opinion of cryptocurrency being a better bet than stocks as investment only makes it all the more necessary to look at things with a more discerning viewpoint.
Cryptocurrencies are high-risk and unregulated. The exchanges go bust every now and then which results in losing all the money in one go. Stocks on the other hand have regulatory bodies to handles things when they go wrong. Stocks also are a much safer option even their value goes down. There’s considerable lack of knowledge and acceptance as far as cryptocurrency is concerned and it also comes with dangers such as the no reverse payment policy.
To draw a conclusion, MAXX Markets recommends looking deeper into cryptocurrency as a concept before making any investments. Investments are to be done with utmost care and any uncertainty and difficulty in understanding the mere concept itself is troubling. Stock Trading has a lot of guidance available which enables a user to have more control and clarity.