Cryptocurrency is a new type of internet money that has no governing body. It is a type of currency that encourages P2P transactions rather than traditional ways of finance, in short banks🏦💵. True, crypto has a lot of potential but can someone get rich from dealing in crypto❓
True knowledge of crypto is one of the factors that may influence someone gaining financial freedom and security through it. Apart from that other factors may also influence it. Some of them are:
1️⃣ Crypto's volatile nature📈📉:
Due to crypto's volatility i.e. rising and falling in prices, investing in a coin or token without knowing how the market works may lead to a big time loss of funds invested in that particular crypto💸.
2️⃣Complexity of most cryptocurrency platforms⚙️:
Due to complexity of terms found on most crypto platform it is hard to operate and carry out transactions on them. This is where traditional means of finance beats Decentralized finance.
3️⃣ High funds needed to invest in cryptocurrency💵:
Because of the amount of funds needed to invest in crypto, people may find it difficult to adapt to using cryptocurrency in every day transactions in exchange for goods and services. However there are cryptocurrencies called stable coins that are linked to the price of real world assets such as dollar and are not affected by volatility i.e. 1 stable coin = $1. Examples may include; Tether (USDT),USDC and many more.
**Just as crypto has its cons, it also has it pros; the good side. Some of the good side of crypto are:**
1️⃣ Starting small, winning big:
Someone investing in crypto may invest in a coin or token with little or no value and then later the price may rise. When such happens a wise trader will quickly sell, get his profit and when the price drops again he buys, keep's the profit for himself then repeats the process all over again. This is called trading.
2️⃣ Transparency of most crypto platforms:
On most Crypto platforms, transactions are stored on something called a blockchain. A blockchain contains a list of transactions of the particular coin been traded.
When a particular block is full it moves on to create another block and continues storing transactions that is why it is called a blockchain. Another thing is that the blockchain is easily accessible by every one with a device and steady internet access. Moreover, the blockchain can't be altered i.e. the values on a block can't be messed with. This is very unlike traditional means of finance.
These are some of the countless benefits of using crypto. However, using crypto with the aim of earning financial security without fully knowing the "A-Z" may lead to your funds growing wings and flying away💸(Liquidation).
