Ness Shantel

Cryptocurrencies are all over the place. In fact, it is in the rage and making people jump into the bandwagon. But the question that many people ask is are cryptos safe and secure? These are the primary questions that are running across the minds of investors, traders, opponents, regulators and supporters around the world. Bottom line however, cryptocurrencies can be hacked but it is safe too.

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Of course there are obvious risks and security vulnerabilities. We can’t use this as grounds to say that it is unsafe to invest in digital currency. Cryptocurrency and safety come hand in hand. When you act as your own bank, you will have to treat every single coin with extreme level of care.

With more and more hackers hacking their way on these coins, there are serious consequences for failing to apply the best practices in managing these coins.

Generally speaking, there are some who say that cryptos are nothing but a scam. Anyway, it could be a yes – for some reasons, they’re safe enough to invest and make money with. Here are handful of ways that you can fall on the latter.

Move Currency off Exchanges

The convenience of accessing your coins after logging into a website and almost instantly perform buy and sell is incomparable. However, it is the worst place where to keep your coins too. As per experts, you are basically using the cryptocurrency for the total opposite to what it is meant for. The record of your coins will be saved on a server which can be hacked at any given time.

Just think of this analogy, it is like putting your money into your pocket and putting it in a bank. Your money may be safe inside a bank but once it’s robbed, goodbye.

Religiously Do Backups

Smartphones get lost and laptops and computers were designed to last until it breaks down at some point. Since you’re holding and controlling your digital currency in these devices, it is essential to perform a backup of your wallet. This way, no matter what happens, you can easily retrieve your coins.

Despite the fact that Ethereum and Bitcoin have nearly dominated the headlines with regards to cryptocurrency investment, still there are roughly 1500 crypto-assets that are in circulation. And believe it or not, this figure keeps piling up as the day passes by.

With the immense popularity that it has today, using these digital currencies to buy and sell goods and services have become possible.

So don’t be surprised if you can use it for paying mortgage on lainaa netistä or when shopping products over the web.

Every cryptocurrency has a minute difference in its function and make-up. This is exactly what we are going to know in this article.

Bitcoin

This has become a household name for cryptocurrency. At the moment, there are more than 16.8 million tokens that are in circulation against the current capped limit of 21 million. Its market capitalization significantly varies on a day to day basis but it hits a record high of over 200 billion dollars.

Bitcoin cash

This was first launched in the summer of 2017 which was an offshoot of original Bitcoin. Yet, it was able to climb the sky and become among the hottest and most traded cryptocurrency in the market.

Litecoin

This is otherwise known as little brother of Bitcoin. Litecoin has a strong resemblance with its older sibling. However, this has faster transactional speed and at the same time, with a higher token limit of 84 million. The mining process on the other hand is memory intensive and the market cap is about 1/20^th the size of Bitcoin.

Dogecoin

You can easily recognize the image of this cryptocurrency from the dog Shiba Inu which was derived from the “Doge” meme on the internet. It was introduced initially as a parody but it was so hot that it had its own community. At the beginning of 2018, Dogecoin has a market capitalization of 2 billion dollars.

Ethereum

This cryptocurrency has been labeled as a decentralized app provider. It was developed originally as “world computer” super network with the goal of eliminating third-party companies in app creation.

Applications that are made on Ethereum are on distributed public platform wherein miners can get “ether” that fuels the network.

Cryptocurrency is getting its fair share of popularity and market interests. Today, there are increasing number of businesses and companies that are accepting cryptocurrencies as another method of payment. With trial and error as well as deeper knowledge in such, it gives investors confidence like WOT Asia and several other private institutions to use and navigate through cryptocurrency market.

A Start of New Era

Both blockchain empowered solutions and blockchain technology itself are now revolutionizing value exchange mechanism. In traditional methods of performing financial operations and government issued currencies that are backed by financial institutions similar to banks, this is literally a big hurdle they have to overtake. It isn’t longer possible to minimize or disregard the existence of cryptocurrency. This is true now that it is quite popular in people around the world.

But the question is…

What are the possible impacts of cryptocurrencies on global economy?

Let me give you a couple of points to ponder

Challenging the Dollar

US Dollar is the leading and dominant currency for quite some time. Also, it is the reserve currency of world’s economy. This is integral in centralization of global market. With this in mind, the world is sure to experience its wrath when a negative development transpires in US financial market.

Crypcurrencies like Bitcoin, Ethereum, Ripple and the likes are decentralizing financial transactions. It’s not reliant on US Dollar or any other currency for that matter. With the continuous growth in adopting cryptocurrencies, global market might no longer have to depend heavily on US dollar. This is going to change the landscape of foreign relations, most specifically, how we do financial trade. Furthermore, if other governments jumped into cryptocurrency market, it may potentially weaken the influence of US in the world.

Risk to National Currencies

Monetary policy of a given state is given thorough consideration. It’s not really a surprise for this has big impact on currency exchanges, rates of interests as well as money supplies. This additionally has an effect on several other things similar to the unemployment and inflation rate.

Values for cryptocurrencies aren’t tied to national currencies. At the same time, there’s no body of government that is overseeing it. Therefore, it’s safe to say that cryptocurrency is free from monopoly or control. If people begin to rely on cryptocurrencies than on national currencies, then this will cripple various countries as well as their economy. Arguably, this may put the economic independence of countries in question.

A Possible Solution

With these potential threats, government-backed cryptocurrencies may become possible in near distant future. Countries might opt to create cryptocurrency of its own in developing autonomy from world’s financial system.