Cryptocurrency is a digital asset designed to work as a medium of exchange wherein individual coin ownership records are stored in a ledger existing in a form of computerized database using cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership. It is the alternative to cash and credit cards for consumers.
Cryptocurrency is a medium of exchange just like currencies but this asset is designed for exchange of digital information. It is safe but also riskier as any other investments out there for consumers. All consumers are strongly adviced to invest in Bitcoin as it is the best cryptocurrency to invest in this year,2020.
ADVANTAGES OF CRYPTOCURRENCY
Easy transactions: cryptocurrency removes the need of a middle man like brokers,by offering one to one transactions on a secure network.
Asset transfers: assets can be transferred from seller to buyer by paying the seller through Bitcoin,which is transparent and secure.
Confidential transactions: cryptocurrency allows one to share information to only the disclosed recipients and privacy to ample finacial history on the same.
Low transaction fee: consumers of cryptocurrency get the benefit of low charges per transcation,which is evident in their bank statements.
Strong security: cryptocurrency provides security to done transactions as they cannot be reversed.
DISADVANTAGES OF CRYPTOCURRENCY
Cybersecurity issues: since cryptocurrencies is under digital technology,then it subject to hackers and other cybersecurity breaches.
Constant fluctuation in prices: this makes cryptocurrency consumers to accept and use cryptocurrency as their prices keep on changing over time.
Low trust rate of digital money: this maybe due to unawareness of advantages that come along with cryptocurrency or on the other hand the tendency of consumers having trust issues about digital money.
Difficult to understand: cryptocurrencies involves digital currency based on a rather complex blockchain technology which is unsafe to deal with if one lacks understanding and awareness of the same