Blockchain – Pros and Cons of Cryptocurrency Trading

Trading crypto is the way to make money online using crypto assets. Since the crypto market is still very young, it is unstable, and prices change daily. Crypto coin supply does not depend on the government or central banks. The emission of every coin is encrypted in its algorithm at the stage of development, so no one can artificially increase the supply or cut it. On the other hand, investors can artificially change the price of an asset by selling it massively or buying, on the contrary. In this article, we would like to discuss the positive and negative sides of cryptocurrency trading

Pros of Cryptocurrency Trading

Let’s begin with the advantages of trading:

  • Impossibility of issuing more coins like bans do with fiat money protects crypto from inflation in the long run.
  • Most crypto assets are decentralized, which ensures protection against crypto monopoly. No central body would control and change the emission of coins so that no one can affect their price.
  • When sending money in crypto, there is no third party to verify a transaction. That is why transactions in crypto are cheap and occur much faster than traditional bank systems like SWIFT do.
  • Crypto exchange may occur between crypto and fiat currencies at low fees and on probably any large crypto platform. Trading is the opportunity to capitalize in the shortest possible period.

Cons of Crypto Trading

Here is the list of disadvantages of trading crypto:

  • Illegal activity remains unnoticed, which is the negative side of decentralization.
  • Manipulations are done not by the government but by large investors (whales) who move the market to change crypto rates.
  • High risks. Since the market is incredibly volatile, it is possible to capitalize and lose everything in a matter of minutes.
  • Hacker attacks.

To learn how to trade crypto, welcome to the WhiteBIT blog and exchange. It is a secure and convenient platform to practice all possible trading tools and passive income options.

About the author

Henry Chukwu

Android is my specialty, what I don't know about Android devices isn't worth knowing ?

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