Cryptocurrencies are booming like anything these days. And so most of the investors are planning to invest in them.
But most of the investors do not know things about these digital currencies, right? For them, here you go!
Here are the top cryptocurrency secrets that you must know before investing in the crypto market.
1. Cryptocurrency Is SUPER Volatile
If you are the one who is constantly following the cryptocurrencies then, you will be able to notice how volatile they are.
As virtual trading occurs on various cryptocurrency exchanges rather than a central exchange that indeed leads to an increase in the volatility rate.
This is one of the cryptocurrency secrets that you must know before entering the crypto market.
2. Digital Currencies Have No Backing Fundamentals
Cryptocurrencies are digital currencies that are not backed up by any central banks or governments like normal currencies.
This is one of the cryptocurrency secrets that you must know. They don’t even have any tangible fundamental factors with which they can help derive an appropriate valuation too.
So, this makes it clear that valuing cryptocurrencies in a traditional sense is more difficult.
3. There Are More Than Thousands Of Crypto’s
The crypto market has more than 1,300 cryptocurrencies but of all, Bitcoin is the true king of the market.
BTC is the first tradable cryptocurrency that has been brought to the market and currently tops the list in the market.
This is one of the cryptocurrency secrets that you must know.
4. Blockchain Has Great Value
When we look at the trading of virtual currencies, it is important to know what lies under those cryptocurrencies that can be valuable.
Blockchain technology is something that is the infrastructure on which the top cryptocurrencies are founded.
Blockchain tech is a digital and decentralized ledger that can record payments and transfer transactions safely and effectively.
5. Blockchain Is Advantageous
Blockchain is not only decentralized, but also has several advantages such as being quicker than that of traditional banking, and doing transactions without any middleman saving costs too.
Additionally, blockchain also offers user control and transparency. This is one of the cryptocurrency secrets that you must know before entering the crypto market.
6. Blockchain Is Not Perfect Too
Blockchain technology has its drawbacks, such as it’s a nascent technology that’s still being developed, and it can sometimes lead to slow transaction speed.
Not to mention verification slowdowns which are obviously critical when it comes to withdrawing your capital from the account. There are also issues about integrating this new technology into the fold too.
7. Cryptocurrencies Are Banned In Many Parts
Though cryptocurrencies are the hottest topic all over the world, they are also banned in many countries. Some have chosen to outrightly ban the use of digital currencies.
It is illegal in Bolivia, Bangladesh, Nepal, Kyrgyzstan, Morocco, and Ecuador.
And there is a possibility that the list of countries may increase too. This is one of the cryptocurrency secrets that you must know.