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Overview of Cryptocurrency

Cryptocurrency, bitcoin, ether

Overview of Cryptocurrency

The cryptocurrency industry has continually expanded over the years since Bitcoin’s (BTC) and Ethereum (ETH). There are numerous forms of blockchain investment products, including initial coin offerings (ICOs), decentralized finance, and non-fungible tokens. Crypto enthusiasts believe that the investment will likely birth crypto millionaires, if not billionaires, in the coming days. People who are yet to engage in digital currencies are looking for compelling reasons and considerations to start investing.  Here are some of the reasons why cryptocurrency investment is good for you.

The Underlying Technology

Bitcoin and other cryptocurrencies are built on blockchain technology, bringing lots of changes in various industries. The technology has eliminated intermediaries in finance through the use of distributed ledgers opening new possibilities. New types of economic activities are now available, such as decentralized finance, which attracts people who believe in digital currencies to invest.

Reliable Store of Value

Cryptocurrencies offer a reliable store of value that, unlike traditional currency, cannot be affected by political factors. Altering the value of cryptocurrencies to hatch artificial inflation is impossible. The value can only be changed by supply and demand level at a given time, making it a long term store of value-free from inflation.  The use of cryptography technology makes it impossible for governments to tax or confiscate crypto coins without the permission of the lawful owner. Cryptocurrency investment is an attractive venture for people who fear inflation, banking bureaucracy and taxation by authorities.

Speculation and possibilities

Speculative trading dominates the cryptocurrency market. Trading is the most common activity in cryptocurrencies. Trading cryptocurrencies is an everyday economic activity amongst crypto enthusiasts, and the better the speculation, the higher the profits.

Absolute control

The decentralized nature of cryptocurrencies gives users control over their assets without the involvement of third parties. The value of the assets held by a crypto user is not self-determined, which means that investors earn maximum profits based on the prevailing exchange rate.

Flexible trading

Crypto trading markets are accessible at all times, making trading a flexible exercise. Traders can buy and sell their coins at any time of the day. There are several cryptocurrencies to consider increasing profits margins by diversifying a trading portfolio.

Closing Remarks

Trading cryptocurrencies brought a significant revolution in finance and has made millionaires within a short time. However, it is essential to note that one can lose their hard-earned income if they plunge into crypto trading without adequate information on how to do it.

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