Why Investors Scare of Cryptocurrencies?
In the world economy, there are many pencil instruments available for trading. The most famous market in the world is the forex market, with almost 6 trillion dollar transactions every day. As a Forex trader, I should know that it is always open and does not require any country or age barrier. On the other hand, there is a financial market named cryptocurrency, which is new in the world.
As a new instrument in this often fear investing in cryptocurrencies as they take care of losing their investment in case of uncertainty. As an emerging market, cryptocurrency has several possibilities to come forward for its uniqueness. However, investors are still confused about investing in cryptocurrencies, and we will see work is the main reason behind it.
What is Cryptocurrency?
Cryptocurrency is a currency that transfers from one person to another person without having any third-party interventions. In the traditional world, our money in our bank is controlled by the government and financial institutes.
Therefore they can take all of our money if they want. For an extended period, people were looking for a secured source to keep their money away from another person, and cryptocurrency is the best way to do this. Cryptocurrencies are made in the concept of blockchain technology.
Do you know what blockchain is?
Blockchain is a chain of blocks. It is a data management system that contains high security. In blockchain technology, no one can take information from you unless you decrypt it.
In cryptocurrency, there are several types of wallets for which the money is kept. Kothi blocks are created in a manner that is not changeable. You create information in the block and transfer, but you cannot overwrite the data. It is a unique concept of blockchain technology that is not possible in the present world of technology.
As a result, if you have money in your wallet, you are only able to change transfer with a secure wallet code, but no one can hack it and can change it as it is not possible in blockchain technology.
Therefore, investors and Technology are enthusiastic about blockchain technology as an innovation of the world economy.
Can We Trust Cryptocurrency?
Trust the main factor in investing in any market. If you invest in Forex and cryptocurrency, you should know how much trust you do. There are many features in cryptocurrency that are not available in the traditional financial market. Therefore traders can consider it a new revolution in the financial That investors did not see earlier. let’s have a look at the key features of cryptocurrency
1. Cryptocurrency is Decentralized
Forex trader, you might have heard that the forex market is a decentralized market. However, there is some central authority that controls the price. A mathematical algorithm drives the amount we usually see in our MT4 or mt5 chart. This process is done by big banks and financial institutes that are known as smart money.
However, in cryptocurrency, there is no such authority that can control your activity. Whatever you have in your Crypto wallet is controlled by you. It is impossible to say for others how much money you have in your wallet. Therefore cryptocurrency is a new suite of security that a financial trader never saw in his life.
2. Control of Money
People usually keep their money in the bank. What may happen if a country got bankrupt?
All your money that is invested in your bank account is nothing but a piece of paper. There is no value of the money if the economy is dead. Furthermore, the Government and Central Bank can give you any time money and have the right to take your money if you are unable to answer the source of your income. So is there any place where you can keep your money safe?
Yes, the only source is cryptocurrency. Cryptocurrency is made to a mathematical calculation. Therefore no one can break the code or take the money until you expose your security wallet ID.
3. Wallet Security
If you keep your money in your wallet, can it be secured?
There are different types of cryptocurrency wallets. There are online wallets and an offline wallet. The best option is to choose a paper wallet.
If you open an account in the ship to currency, you would be given a secure wallet, buy a printing copy, and you have to keep it safe from the maths people. No one can see how much money you have in your wallet unless no one can see how much money you have in your wallet unless you display them you disclose the secured wallet to them. You have to keep the wallet away from the people.
Therefore no one will be able to know what you have got.
4. Trading the Cryptocurrency
If you want to buy a cryptocurrency, you have to open an account under a blockchain. Therefore you have to exchange the Fiat currency with cryptocurrency. It is easy for traders to buy in cryptocurrency, and you can cancel anytime when you see the price rise high.
On the other hand, you can trade cryptocurrency through a Forex broker. Many brokers offer cryptocurrency CFD trading Forex and stocks. Through this broker, you can buy your favorite Bitcoin or Litecoin and trade as you do for the forex currency.
Therefore Cryptocurrency and Forex are both a good source of earning money from online trading, and you can trade both at a time.
In conclusion, we can say that it is in the New Era of business that people never saw earlier. However, there is a will be as any reserve currency does not back it. In traditional currency, most of the printed money is backed by gold or the US dollar.
However, it is increasing, and people are aware of the security of their own money. in that sense, cryptocurrency is an extensive source of protection that traders can hav