With bitcoins gaining more traction worldwide, more people are getting into the world of trading cryptocurrencies. But, how many actually know the pros and cons of trading these virtual currencies? Most people will get into it to earn some side income, it doesn't matter if it's Bitcoin or other alt-coins like Ethereum, Ripple, Litecoin, etc.
So, if you're thinking about trading in crypto, it may be wise to know the pros and cons of trading bitcoin and cryptocurrencies before jumping right into it.
There are a few ways that trading Bitcoin can profit you financially. Let's start with the pros of trading using Bitcoin or other cryptocurrencies.
PROS of trading Bitcoin
It's convenient to trade in Bitcoin or any cryptocurrencies in general as they can be sold and bought freely 24/7. Since Bitcoin is a form of currency that exists digitally, it can be traded across all countries and time zones around the world. With Bitcoin, you have no worries about any restrictions when transferring money for example bank holidays or overseas transfer.
You can also make use of online marketplace like Singbit to benefit greatly from trading Bitcoin securely. Singbit is a global peer-to-peer marketplace for Bitcoin & Ethereum that accepts various payment methods so that you get to decide how you wish to trade!
Another big perk that Bitcoin offers is the complete transparency of information. Thanks to the blockchain technology, every single transaction is registered on the public ledger which can be seen by literally anyone. Even though the transaction is public but none of your personal information is shown. In other words, only your digital wallet address is visible, not your personal details. This also provides a great sense of security to using Bitcoin since it's impossible for any individual or even government to manipulate the protocol.
Great security and total control
When it comes to our finances, we demand great security and total control. With Bitcoin, it allows you to be in full control of any transactions made. Plus, you can also keep your cryptocurrencies in a digital wallet instead of a centralised bank.
Bitcoin also can protect buyers from sellers who want to impose hidden additional charges. Since no seller can charge any fee from the buyer without letting them know beforehand, they must be transparent about it before charging any extra fee.
Lower risks for sellers
With Bitcoin or other cryptocurrencies, merchants have lower risks since no transaction can be reversed, no exchange of personal information, and totally secure. Sellers are protected from losses due to fraud thanks to the blockchain technology with the use of public ledger.
Low transaction fees
This point is quite self-explanatory. The fees for trading Bitcoin varies depends on the exchange, however, there is minimum to zero fee within Bitcoin payments. Even though it's normal to have low fees, there will be other additional fees too.
For all of its advantages, Bitcoin is something of a double-edged sword. Let's look into the disadvantages that you should be aware of before getting into crypto trading.
Cons of trading Bitcoin
The high volatility of Bitcoin has always been the biggest concern which scares people away from investing in Bitcoin. The high volatility is due to the limited supply of Bitcoin (only 21 million bitcoin is ever created and at least 80% has already been mined) and more people are trying to hold to. All this aside, once more merchants adopt Bitcoin as a payment medium, it will eventually stabilized the price. Plus, any major current affairs related to cryptocurrencies play a role in affecting the price as well.
Bitcoin is in its infancy stage
Another reason that often makes people think twice before trading Bitcoin is that it's still in its infancy stage and the technology is not ready for mass adoption yet. No doubt that Bitcoin is full of potential but it still has a lot of room to grow before it reaches its full form.
In addition, the lack of awareness and education about cryptocurrencies and how we can adopt them in our daily lives is also contributing to the uncertainty about Bitcoin.
In essence, it's important to know what you're getting into and find out about the pros and cons of trading Bitcoin and cryptocurrencies before you start investing. Do your own research and understand your risk tolerance. But, nevertheless, just keep an open mind and learn about the limitless possibilities Bitcoin and cryptocurrencies can offer!