Cryptocurrency – Redefining Currency Digitalization
There's a famous saying “the only thing which is constant is change.” This has again this has proved true with cryptocurrency, as it has managed to change the trajectory of e-currency while gaining a worldwide audience. A few years earlier, cryptocurrency was unheard of amongst the masses but some drastic changes in the market have brought some serious popularity to the market.
Some famous cryptocurrencies
Bitcoin is one such currency that changed the market single-handedly and is considered to be one of the most important pillars of the cryptocurrency world. Bitcoin enormously changed the fate of virtual currencies by injecting a sense of optimism in the market where cryptos were still considered as a gamble. But Bitcoin changed the perception on to a high note, thus bringing more and more investment into the virtual currencies. If you’re looking to buy Ethereum and alt-coins (which are other popular currencies), let’s get to know some facts before you step into the game.
After studying the recent trends, here’s a statistical representation of various currencies against their market value
|Bitcoin||900 billion $|
|Ethereum||200 billion $|
|XRP||25 billion $|
|Tether||30 billion $|
|Litecoin||12 billion $|
|Bitcoin cash||10 billion $|
|Chainlink||11 billion $|
|Cardano||28 billion $|
|Polkadot||24 billion $|
|Binance coin||21 billion $|
As we can clearly see, Bitcoin rules the game and is way compared to other currencies. It’s evident from its market value, which separates it from the rest. No other currency seems to be closing the gap in terms of market capitalization.
Problems associated with cryptocurrencies
- Investments involve risks
- Cryptocurrencies do not have government backing
- Various associated scams and trust shaking incidents
Investments involve risks
Due to the ever-fluctuating trends of the market, the value of virtual currencies are always fluctuating. In fact, Bitcoin is the most visible result of this highly fluctuating market. But this fluctuation does not always occur positively. Sometimes it goes the other way, which can become a serious problem for investors. Therefore investments in virtual currencies should be done only after proper market research.
Cryptocurrencies do not have government backing
The governments of various countries do not endorse cryptocurrency in any form; these currencies are not backed by the government. Suppose you have some amount of virtual currency stored online or in any wallet provided by the company. It cannot be considered equivalent to the same amount of money stored in the bank, in terms of security, because cryptocurrencies haven’t yet received approval from many governments. Therefore if a crypto-company that you’ve invested in shuts down, the respective government cannot step in with legal provisions that support the investors.
Various Scam techniques:
The constantly increasing popularity of cryptocurrency has brought many scammers into the market mistreating and cheating investors. We have some tips for you on how can you identify a scammer.
- S/he will assure you or guarantee you profits from certain investments.
- S/he will promise you larger profits in a very short span of time.
- S/he will promise you to give some amount of cryptocurrency for free.
- S/he will fake the identity of a certain company.
Apart from this, Cryptojacking is another problem faced by people where the scammers use a digital platform to scam people by making you visit an unsecured website and dropping some codes which can give access to your device to them. Therefore you must be careful while visiting any unsecured website and do not click on any unknown links without any guidance.
Cryptocurrency, being the latest trend of the investment market involves risks that cannot be neglected to any extent. To reduce risks while investing, proper research based on the previous trends and statistical analysis is your friend. Investors are hereby advised that although the opportunity to invest in crypto is lucrative, proper caution before diving in is the call of the day.