Is it a safe way of investment?
Today, we witness a vast change in every sector. For example, we never thought of a virtual education system a decade ago. But, now we study online from wherever we are. This transformation is not visible only in the field of education but in other fields too. Fields like management, finance, art and architecture, medicine, agriculture, business, etc. have undergone the process of transformation in this technology dominant era. The field of business and finance have also converted from physical transactions. And dealings with online and especially the emergence of “cryptocurrency” is a major invention. And always has been a controversial topic in this century. This essay focuses on the process of cryptocurrency and whether it is safe to invest here or not.
What is cryptocurrency?
Cryptocurrency in other words known as “virtual currency” or “digital currency” was invented in the year 2008, by a person or persons under the pseudonym Satoshi Nakamoto. This cryptocurrency is managed and operated by a decentralized technology called the blockchain. Blockchain is performing the task of buying, keeping, and selling cryptocurrencies. There are several types of cryptocurrencies. The well-known ones are as follows, Bitcoin, Etherium, Binance coin, etc. Bitcoin is considered the king of cryptocurrency.
How does the trading process take place using cryptocurrency?
The virtual or digital currency as in the name of the cryptocurrencies can only be used to trade online. They are printed online. It does the duty of a token that is offered at some places. Services and goods can be bought from some companies using cryptocurrencies. Crypto mining is the method in which recent cryptocurrency transactions are verified, and new blocks are added to the blockchain. And it was said, in some countries people are even allowed to dine at restaurants using these digital currencies. In order to own cryptocurrencies via exchange, you should have an app called “wallet”. Here, you can buy cryptocurrencies, sell them as well as check the balance amount you have.
Will it be secure to invest in cryptocurrency?
Till this point, there are many fraud cases that are being filed upon cryptocurrency investments. People without knowing the real trading method invest their money and when they lose the amount they file cases. People are being tricked in many ways. The common way in which people are manipulated is, the role played by social media influencers and celebrities for marketing the cryptocurrency trade. People are only being shown how a small amount of investment goes up in the graph and multiplies the amount of invested money.
Though, it is true that the transactions made here are secure and private as they are maintained in a very secluded manner people who have zero knowledge about this kind of business should not try to invest here. It is rather good to learn first about cryptocurrency trade specifically the process of buying, selling, storing along with amount fluctuations.
Is cryptocurrency a fortune or a misfortune to the world of business?
Investing in cryptocurrency can be both advantageous as well as disadvantageous at times. Because we can never predict the value of coins. This can either rise and make you a millionaire overnight or the chances are there for the opposite to happen too. This process is self-monitored which means it can be trusted, but not completely. It is decentralized, the authorization is not given to the government of any country. But owned by a private company or companies.
This way of making transactions is very safe rather than making physical transactions as no one knows who is owning cryptocurrencies. Still, the risk is quite sure maybe not today but in near future. Cyber hacking can take place in the near future with the improvement in the field of Information and Technology, though these buy and selling processes are made using a network of hundreds of computers. Moreover, the usage of black money can also take place. This will be like a hidden, secret asset for which no taxes are paid.
crypto and luck
Cryptocurrency, the digital money trading is obviously like a piece of good luck for those who get their investments multiplied and a piece of bad luck for those who lose the investment. Therefore, it is quite clear that this unpredictable trading can bring both, profit or loss. People who invest here should be mentally prepared to accept both, equally. If not, it would lead to mental sickness and would result negatively to the health of the person, and sometimes it can take lives too as we have seen many situations like this in the past. Some countries have banned this system.
Countries like China, Algeria, Egypt, Bolivia, Cambodia, Morocco, and Nepal have not given legal acceptance and most of the countries in the world have not imposed laws against this system. But have not given legal permission to this method of money-making. Furthermore, according to my point of view, again I would insist that the investors should be more vigilant when preparing to invest in cryptocurrency. Yes! Even Elon Musk or any richest person in the world could have invested or owned cryptocurrencies. But at the end of the day, it will be you who have to face consequences alone therefore, think several times before you make a decision.
