Before embarking on any online trading, it is important to be aware of the possible benefits and risks first. Just like everything else, online trading in cryptocurrency has its own pros and cons. This article assists in understanding what to expect in the trading, bringing you the pros and cons of online trading systems.
1. It’s convenient and offers 24 hour accessibility
Cryptocurrencies can be bought and sold all through the day on mobile making it more convenient. Also, cryptocurrencies are a global product and so can be traded throughout the world at any given time zone. This makes it ideal for anyone even for those without access to a computer to trade in real time. This has helped the trading possible for everyone anywhere.
2. Offers transparency
Although while trading in cryptocurrency you are not identified by name, all the transactions are kept in an open ledger. This makes it possible for anyone to view the data at any given time. This makes it a more transparent and safe banking system. This accountability has made the trading more popular.
3. Big brands are eventually accepting cryptocurrencies
After a very long time, brands like Microsoft and Paypal are allowing cryptocurrencies like bitcoin as a way to pay. So if there’s a trader who has made a substantial amount of profits and is willing to do a purchase they can do so via paypal. There are many cryptos emerging and so there will be many brands willing to accept them and hence improving the whole online business.
4. Fluctuating rates
Cryptocurrencies are susceptible to fluctuating rates. This shifts happen during the day making it easy for shrewd traders who know what they are doing to turn huge amounts of profits. This is only an advantage to experienced traders.
1. Fluctuating rates
The change in rates can cause challenges to some. Most people use cryptocurrency as an investment waiting for a specific moment the rates would change in their favor. This can easily lead to losses if done wrongly. Being responsible with the currency just like any other product is important in creating trust and understanding in the newly discovered currency.
2. It can be hard to understand
The whole idea of a financial system that is decentralized and transactions are kept in an open ledger can be difficult to take in especially for a person that has no much knowledge in technology. Since it sometimes seems not intelligible, people feel hesitant in taking the benefits it may provide and this happens to be the biggest obstacle in digital currencies today.
3. In case of loss, no security is provided
As with every technology that comes out, there are people who like to take advantage and steal off from traders who have little experience. This has been a thing with digital currencies hence it is important to be aware of this risk. With a little of basic security,treating it like you would with real money, it is possible to prevent yourself from such kind of loss that can never be returned.
4. Governments may decide to get involved
It is unlikely but governments may decide to participate in some way due to the use of cryptocurrencies by crooks. They could put in place regulations, hence restricting its use.