Pros and Cons of Investing in Digital Currencies
Today I am going to be looking at the pros and cons of using digital currencies, for I am more than aware lots of people the world over are still undecided as to whether they should start using any digital currencies such as Bitcoin and Ethereum or in fact any of the hundreds if not thousands of other digital currencies that are readily abatable!
The first thing to keep in mind is that digital currencies were initially invented with the aim of allowing people to move money around the web in a very efficient and low cost way and also to allow anyone wishing to send payments anonymously to be able to do so.
The main idea behind Bitcoin was to take on the fiat currencies and allow people to have a way of moving money around and performing peer to peer transactions without worrying about the legalities of doing so.
As such whilst it is very true to say that the vast majority of people are in fact using Bitcoin and other digital currencies as a purely investment opportunity, it was as a way of moving money around that digital currencies were invented for.
So never lose track of the fact that you can and will always be able to pay for goods or services when using Bitcoin or any other digital currency and as long as you have a Bitcoin or digital currency wallet you can send money to anyone instantly too.
Highly Secure Transactions
You first have to get your head around the way in which a blockchain works and operates to fully understand the security aspects of digital currencies, for once you do understand how a blockchain works you will find you get a much deeper insight into just why digital currencies are so very secure.
You could look at a blockchain as a type of ledger, and as such when for example a Bitcoin is sent from one person to another, there are several checks made to ensure that transfer is of a valid Bitcoin and when processed it then becomes part of the blockchain and as such it is always possible to see it is a valid Bitcoin and one that is part of the chain.
What you do also need to keep in mind though is where you buy and sell your Bitcoin from or to for that matter where you buy or sell any other digital currencies from or to.
There are many established digital currency exchanges available, and I would strongly advise you to make use of one of them rather than one that is new and does not have a solid track record.
By using an established digital currency exchange you are always going to have the complete peace of mind in knowing you payments are safe and your digital currencies are safe to in fact many exchanges have an insurance scheme in place that does protect your funds and your digital currency holdings to.
Storing Digital Currencies Safely
Many people are more than happy to store their digital currency holding on their computers or on their mobile devices using a digital wallet as the place they store them in, however there are many risks you will be exposing yourself to if that is how you chose to store them!
What I would strongly advise you to do is to look at one of the many different ways that it is now possible to actually store your digital currency holdings offline, for there is going to be no way in the world anyone could for example hack your digital currencies and steal then if they are stored offline.
You can quite easily get hold of something known as a storage key that is simply a small device that you load your Bitcoin or other digital currencies on and then put that device somewhere safe into you wish to use those digital currencies or sell them.
In find, if you are about to buy Bitcoin or any other cryptocurrency then please look at some of the many additional ways that you are going to be able to store then that will ensure they are never vulnerable to attack which they are always going to be if you simply store them on a mobile device or on your computer.
David is a forex trader and writer who has spent the last few years giving his opinion and spreading news about oncoming markets and trading tips. Besides from being a trader he is also a lifelong Everton fan and enjoys spending free time watching his beloved team in the premier league.