Cryptocurrencies are a digital mode of money exchange that happens in an encrypted way. People from all walks of life are interested in crypto investment. There has been a sharp increase in the market of cryptocurrencies. In 2017 the market had a value of $332 million; in 2020 it had risen to $3.67 billion. It is expected that the value of Cryptocurrency would reach $394.60 billion by the year 2028. The most widely used Cryptocurrency i.e. Bitcoins are now being accepted globally. Even digital payment platforms like PayPal added cryptocurrency Bitcoin to their website and wallet.
3 Reasons In Favor Of Crypto-Investment
- Supports the social vision behind the concept of Cryptocurrency i.e., decentralized control of the currency where users control it fully. Almost all physical currencies are owned and controlled by the government, and these currencies can be fluctuated and manipulated by political leaders. In cryptocurrencies, you do not have to worry about this inflation because it is completely controlled by users and investors.
- You would have faith in the fact that cryptocurrencies would be the future mode of transaction and can totally replace conventional currency in near future.
- You would understand the technology (blockchain technology) by which cryptocurrencies work. As a result, you would find how valuable aspects like peer-to-peer transactions, maintaining confidentiality, transparency and security are.
Understanding Cryptocurrency Network
Cryptocurrencies use blockchain technology and are stored in a public ledger. Unlike banks, the users have control over all the assets in the system which they can handle. Using blockchain technology, you cannot overwrite data once it is established. Manipulation of data in a Cryptocurrency system is almost impossible.
Facts That The Investors Need To Know Before Making Crypto-Investment
- The scheme of pump-and-dump in Cryptocurrency- Investors often make an investment in a Cryptocurrency that has a low market value which is in the form of altcoins usually. Then the new investors are convinced to invest in those low valued coins before the original investor sells off the price that increased artificially.
- Initial coin suffering is scammed- In pre-market conditions often fake cryptocurrencies are offered to investors. This results in investors losing their money on a product that does not exist anymore.
- Theft of Cryptocurrency- Cyber attackers can sometimes hack the system of Cryptocurrency breaking the high-level security system and taking away all your money from the crypto wallet. This is a rare case though, but still, you need to be careful. Do not share the private key of your crypto wallet with anybody.
- Do not respond to random offers of buying cryptocurrencies– You should never be carried away by the random texts sent to you regarding exciting offers that you can avail of by buying cryptocurrencies. Do a thorough research and choose a reliable exchange. If you are asked to pay Cryptocurrency for goods on social media or text messages, consider it dubious.
Measures To Secure Your Crypto Investment
- Software must always be updated for the electronic devices from where you access the Cryptocurrency network.
- Always backup your Cryptocurrency wallet. Anything connected with your crypto investment must be stored in more than one safe place. The password used during backup must be strong and if multiple crypto platforms are used, use separate passwords for each one of them.
- Digital copies of information related to crypto investment shouldn’t be created as this might expose you to hackers. Avoid saving screenshots, photos or any other digital file in your device that has information regarding your investment.
- Uses multi-signature crypto wallet- Like two-step-authentication security system to secure your wallet.
- You need to have a clear idea about the types of crypto wallets and how to secure them to prevent hacking.
- Study and research from authentic sources before you make a crypto investment. Don’t always rely on the information provided on social platforms, television, or random websites as in most cases they are scams.
The Ethereum Code trading system has changed the entire scenario and people can access this platform for buying and selling Bitcoin. So, in order to secure your transactions, do intense research before you make any crypto investment.