10 Things You Should Know Before You Buy Cryptocurrency

10 Things You Should Know Before You Buy Cryptocurrency

Last updated on July 17th, 2023 at 10:17 am

So, the Cryptocurrency is everywhere!

Yeah! We are talking right and it is literally on boom!

You can find people talking about this phenomenon all around you in the cab, school, college, office, informal chats and almost everywhere. No wonder it deserves the hype as it is not only much talked about topic but it has delivered high returns on investments.

I know people who have bought their dream bikes & cars from this additional earning in short span of time. Though I am not an expert on Blockchain but yeah then I have firsthand experience of investing in cryptocurrencies and earning some handsome amount.

It wasn’t coming easy before I finally decided to get into the rush of buying cryptocurrencies that were supposed to give some good returns. Frankly speaking, I heard about cryptocurrencies back in early 2011 but yeah then it was more than a currency of bad people for me then.

In fact, I started writing about Bitcoin and other currencies as if a medium of transaction to get ransom by cybercriminals through ransomware attacks. Though, it was until recently before the cryptocurrency boom happened one of my friends suggested me to take this seriously.

And then comes the serious research and investment into it. With my experience in cryptocurrencies, I could help you understand few things you should know before you actually plan to buy any cryptocurrency.

What is Cryptocurrency?

Before investing in this highly speculative and volatile currency, you should be knowing about it. Right?

A cryptocurrency is a form of virtual or digital currency that is securely designed and uses cryptography for security. In most cases, it is anonymous and hard to counterfeit due to its improved security features.

This virtual currency is associated with the Internet that is designed to use cryptography, the process of converting legible information into a highly uncrackable code. Further, it is used to track transfers and purchases.

One important feature of this digital currency is its organic nature as it is not issued or supported by any central authority. Thus, it is completely immune to interference by any central authority or government. It also reduces the chances of manipulation.

Benefits and Drawbacks of Cryptocurrencies

Cryptocurrencies brings certain benefits to users to make it more important for daily transactions. It helps you make your funds transfer easy and convenient between two parties.

Here, it offers secure funds transfer by facilitating it through the use of private & public keys for security reasons. You can make these fund transfers with minimum processing fees and least trouble.

The drawback of cryptocurrencies is that they are not legalized yet by most central agencies or governments. Another limitation of cryptocurrencies is that they are highly volatile and speculative in nature which makes them high-risk investment. It makes cryptocurrencies highly unpredictable when it comes to long-term investment.

Verify if Your Country has Legalized the Cryptocurrency Transactions

This is another important factor that should be deciding your cryptocurrency transactions. There are few countries in the world that have legalized the cryptocurrency transactions still there is a lot more nation who have outrightly blocked the use of cryptocurrencies or are studying their feasibility.

It is known factor that cryptocurrencies have no central authority to control thus it becomes important for governments to decide every single factor before legalizing them. Further, you can expect that your country might not embrace cryptocurrency anytime sooner.

Thus, it becomes really crucial to know whether cryptocurrency is legal (or going to be legal) in your country before you make any transactions into it.  

Check Cryptocurrency Acceptance

If you are buying cryptocurrency for pure investment and planning to sell it after some time then it’s ok, else it is important to know the currency you are buying should have some outlets where you can spend it.

Here comes the good news! Apart from some big companies around the world, many local merchants have also allowed their consumers to make transactions in cryptocurrencies.

In fact, some big online exchange platforms are planning to launch their own cryptocurrencies. Further, many exchanges around the world are waiting to list cryptocurrencies with them. Thus, you have more options to come.

When is the right time to buy?

Well, this is a tricky question. Cryptocurrencies aren’t controlled by any central authority and its prices don’t get affected directly by single country’s financial stability or situation.

Thus it is your research about the cryptocurrency that should be a deciding factor. Despite the fact, cryptocurrency isn’t controlled by any central authority still ban or restriction on cryptocurrency trade in your country may affect its prices for a period of time.

Here, you can do trade in cryptocurrency with international exchange for better security.

Is all cryptocurrency the same?

Well, No! Here, to earn some cryptocurrencies you need to mine them, in addition, to directly buying them from the exchange. Then there are other cryptocurrencies that don’t require mining. Here, you can differentiate cryptocurrencies in “currency” cryptocurrency, “utility” cryptocurrency, and “App/Platform” cryptocurrency.

Where is your Cryptocurrency stored?

Unlike traditional stocks & bonds where you have access to your investments through a brokerage account, cryptocurrencies are saved in Cryptocurrency wallet or digital wallet. Here, you can send, receive and store cryptocurrency in these digital wallets anytime anywhere. Further, you need to keep these accounts secured with PIN or access details.

You can’t Cancel Cryptocurrency Transactions

While making online transactions to buy or sell cryptocurrency, these platforms don’t allow you to recall your transactions. Here, if you have transferred cryptocurrency to the wrong ID then you can only expect to meet that guy someday to get your currency back.

Technically, when you have initiated the transaction and the cryptocurrency have moved out of your secured wallet it can’t be recovered by any means. Thus, it becomes important to verify every single detail before making transactions.

Know how much you can afford to lose

This is one important factor you should consider. Here, you need to know how much you can afford to lose in case things don’t work out the way you want them to.

As it is known that these currencies are highly volatile and speculative in nature thus they become high-risk investments too.

Apart from it, there are legalization issue, hackers threat, and many more threats that make your investment vulnerable all the time. Thus, it becomes important to know your comfortable investment zone.

Cryptocurrencies are traceable

If you differ the idea then you should be knowing that many cryptocurrency experts suggest that cryptocurrency is traceable when converted into fiat currency (?).

Conclusion

Knowing the immense benefits and certain limitation, cryptocurrency evangelists are positive that it is going to be a major medium of transactions in near future. With further technological advancements, you could find that limitations of cryptocurrencies have been fixed in near future.

Here, based on my research and first-hand experience of trading cryptocurrency, I could only say that “Cryptocurrency is here to stay!”.

Author Bio:

Dinesh Lakhwani

Dinesh Lakhwani, the entrepreneurial brain behind “TechCommuters,” achieved big things in the tech world. He started the company to make smart and user-friendly tech solutions. Thanks to his sharp thinking, focus on quality and the motto of never giving up, TechCommuters became a top player in the industry. His commitment to excellence has propelled the company to a leading position in the industry.

Leave a comment

Your email address will not be published. Required fields are marked *

Popular Post

Recent Post

10 Best Sites to Download PC Games For Free In 2024 [Latest List]

By TechCommuters / March 2, 2024

Introduction: Looking for the best site to download PC games for free? You’ve come to the right place. In the golden age of digital distribution, there are more options than ever before for gamers to purchase and download PC games legitimately and legally. From major publishers’ platforms to online stores and subscription services, the PC […]

How To Fix Hulu Error Code 21 [Latest Guide]

By TechCommuters / February 29, 2024

Introduction: With its extensive catalog of television, film, and originals, Hulu stands as a top streaming platform. However, as with any technology, users occasionally run into technical difficulties. A common error Hulu subscribers may encounter is the frustrating Error Code 21. This error code typically appears when there is an issue with the Hulu app […]

What Are Crypto Exchanges And How Do They Work

By TechCommuters / February 27, 2024

Introduction: Cryptocurrencies have exploded in popularity in recent years. Driving mainstream adoption are crypto exchanges – online platforms that allow investors to easily buy, sell, and trade digital currencies like Bitcoin and Ethereum. Crypto exchanges provide the critical infrastructure that allows individuals and institutions seamless entry into the crypto ecosystem. But how exactly do these […]

How To Fix Preparing Automatic Repair Loop On Windows 10/11

By TechCommuters / February 26, 2024

Introduction: The “Preparing automatic repair” loop is a common issue that affects Windows 10 and 11 users when the operating system fails to boot properly. This automatic repair process tries to diagnose and fix boot issues but often gets stuck repeatedly restarting and checking for problems, creating an endless loop. There are several potential causes […]

15 Best Disk Partition Software for Windows 11 and 10 [2024]

By TechCommuters / February 25, 2024

Table Of Contents: Introduction What is Disk Partitioning Why is disk partitioning needed? How to do disk partitioning? Best Disk Partition Software for Windows 11/10/8/7 in 2024 EaseUS Partition Master MiniTool Partition Wizard Pro Paragon Partition Manager AOMEI Partition Assistant Active@ Partition Manager Tenorshare Partition Manager GParted Cute Partition Manager Macrorit Partition Expert IM-Magic Partition […]

10 Best Password Manager for Mac 2024 [Latest List]

By TechCommuters / February 24, 2024

Introduction: Using a Mac password manager app is one of the best ways to stay secure online. A good password management app generates strong, unique passwords for all your accounts, remembers them for you, and helps you log in quickly and easily. When choosing a password manager for your Mac, you’ll want one that is […]

10 Best Free Password Manager Apps for Android 2024 [Updated]

By TechCommuters / February 23, 2024

Introduction: Managing passwords is a major challenge in the digital era. With the proliferation of online accounts, we’re expected to create and remember many complex, unique passwords. This poses a significant burden on our memory. Fortunately, Android password managers offer a convenient solution. These applications store passwords securely, generate strong random passwords, and auto-fill login […]

Top 10 Best Password Managers for iPhone In 2024 [Updated]

By TechCommuters / February 22, 2024

Introduction: Having strong and unique passwords for all your online accounts is essential for good digital security and privacy. Reusing the same passwords on multiple sites is a risky practice as a breach on one site puts all your accounts at risk. This is where a dedicated password manager comes in very handy. These apps […]

10 Best Password Manager for Windows 11/10/8/7 for 2024

By TechCommuters / February 21, 2024

Introduction: In today’s digital age, we have loads of accounts – like email, social media, online banking, and shopping sites. That means we’ve got tons of passwords to remember. It’s risky to use the same password for everything, but keeping track of unique ones for each account can be tough. A password manager proves invaluable […]

10 Best Free Android Cleaner Apps for 2024 [Latest List]

By TechCommuters / February 20, 2024

Introduction: A clean and optimized Android device performs better, lasts longer, and runs faster. With time, caches, residual files, and unneeded data can clutter up your Android smartphone or tablet and slow it down. That’s why having a quality cleaner app is essential. The Google Play Store has hundreds of Android cleaner and optimization apps […]