What’s the truth behind cryptocurrency?

truth behind cryptocurrency

Everyone seems to be curious about crypto and seems to be looking at solving the mystery of what it really is. People who don’t own crypto are also quite interested in knowing its inner workings. The reason is that irrespective of your stand and beliefs cryptocurrency is here to stay. Even if you don’t have a direct stake, sooner or later it will touch your life in some form. Crypto is revolutionizing the world of finance and opening up more avenues on a global level. Looking at the abundance of information online, it is important one understands crypto better and weeds out rumors from the facts of truth behind cryptocurrency.

Let us take a look at why crypto has attracted so much money and why people are choosing to invest despite knowing the risks.

Things to remember about crypto- truth behind cryptocurrency

Bankless transactions — truth behind cryptocurrency- 

there are many people around the world who do not have access to traditional banking methods. This may be due to the fact that they do not have the proper knowledge or access to proper paperwork. Crypto is proving to be a boon for such people. By simply getting a crypto wallet and starting on an exchange platform you have the freedom of making use of your finances the way you deem fit. 

Surpasses conventional infrastructure – imagine if you wish to spend money that you have in your bank account, but you cannot do so due to a lack of infrastructure. Banks, ATMs, or other financial institutions are under the purview of the government. Crypto surpasses this need for conventional infrastructure. For example, if you wish to send money to your friend in times of need, you have to wait for 3 to 4 working days at least for the money to get transferred across borders. However, if you have cryptocurrency in hand you can pay in Bitcoin or Ethereum. The ETH to INR  value will be converted into whatever currency is applicable, and the money will be received instantly.

Enhancing opportunities – crypto has become a way to attract the attention and efforts of people with serious intellectual horsepower. Countries that have embraced crypto are likely to be on a fast track to innovation and are likely to attract business ventures with a vision. Businesses that have adopted the use of cryptocurrency methods of payment attract a base of customers who are not afraid to experiment and keep up with technological advancements. Crypto is known to create opportunities through its applications.

The beginning of an investment

Investing in crypto is a fairly straightforward task. Whenever you feel that you are ready to make an investment, go on an exchange platform and start immediately. One of the most popular exchanges in India is CoinSwitch. Download the app and complete your KYC and you are free to trade using cryptocurrency. You need to buy a crypto wallet that can store your crypto safely. For example, if you feel that the polygon to INR value has come down and you decide to invest in crypto then post buying the polygon you should immediately move it to your wallet.

Risks and traps

Once crypto became a household name it also became an easy way for frauds to set up fake websites and points of sale. This is why you must invest in cryptocurrency using a trustworthy exchange platform. Apart from this, the biggest risk involved in crypto is the volatility of the market itself. The recent news of the losses of Coinbase was unexpected and a good reminder of the risks involved when you are looking to invest in cryptocurrency. Apart from these obvious risks the relevance of the cryptocurrency, the volume of trade, and real-world applications are some of the factors that affect the value.

Strategies for investment

If you are looking for long-term gains using crypto then dollar-cost averaging is by far the most successful strategy. It minimizes the risk and allows you to be true to your budget without overshooting it. It basically involves keeping money aside for crypto and buying it at regular intervals.

There are a lot more things to be understood when it comes to investing in cryptocurrency. The technical terms and future plans for cryptocurrency should be understood completely before diving into this investment opportunity. Every time someone suggests you invest in crypto, ask them for the basis of their investments to know more. Treat any cryptocurrency as a separate case and look into it before buying it.

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