The article Cryptocurrency Prices advantages disadvantages risk. our advice was written by an experience professional in wealth management. NetInvestissement pays particular attention to the quality, accuracy and objectivity of the information provided.
Reminder on the risk factor
Although I can’t imagine that you don’t already know it, I must remember that investing in cryptocurrencies (all Cryptocurrency Prices even stablecoins) involves a risk of capital loss.
This does not mean that you should flee and throw yourself on the first passbook A that passes. Especially since you lose money each month when you place your money on a booklet A 0.5% return for inflation at 1.2% CQFD. But it is therefore important to bear this in mind and therefore to deal with it intelligently and in proportion in a diversified asset allocation Don’t panic we’ll see it all together.
Preamble: how cryptocurrency works
The euro is therefore a European currency, controlled, supervised and centralized via the ECB (European Central Bank). It is the ECB which set and supervise what is call the issuance of money also call the money printing.
In other words in consultation with the State banks (Banque de France) of each European country the ECB ensures that it also controls exchanges and therefore in particular the value of the currency.
At the same time the euro like the dollar, the yen, the yuan, etc., is a strong and stable currency because it is precisely supervise centralize by the banks the latter also providing you with a kind of guarantee guarantee of solvency of the value of this currency.
That he will indeed be paid for the transaction made together because, on your side. Your bank or your visa or american express credit card provider also provides a deposit and a guarantee of your solvency. All our purchases all our transactions are therefore insured and secured by the banking system which insures and covers each party bilaterally.
The very principle of cryptocurrency is based on the absence of any control body. This is also why we speak of DEFI (decentralized finance or decentralized finance). impossible to corrupt a transaction.
Cryptocurrencies: the advantages
Come on, let’s start with the positives and there are some. Investing in cryptocurrencies indeed has many advantages for its millions of users.
During the third quarter of 2020, we started to hear about the possible creation by the ECB (European Central Bank) of a European digital currency: the crypto euro or crypto-euro. This means that the major banking institutions are becoming aware of the digital revolution that is taking place in currencies and of the market’s desire to increasingly dissociate itself from traditional centralized financial organisations.
It therefore seems almost obvious to us that the future of money and global finance will be in cryptocurrencies.
Advantage #1: the future of global finance
If we are still only at dawn, the revolution has already begun. Just look at the trading volumes and global transaction volumes of cryptocurrencies that have been growing steadily since 2015. Dozens of new cryptocurrencies are create each year some more or less wacky or wacky.
Choose to invest in cryptocurrencies such as bitcoin , Ethereum, Litecoin or Ripple (there are still many others worth considering).
In view of their respective capitalization these cryptocurrencies destined to become players in the economy of the future starting today. Furthermore if you are one of those who believe.
That the global financial system as we know it will collapse within fifteen or twenty years then all the more reason to tilt into the 21st century by opening a free account to start trying out these new digital currencies.
Advantage N°2: It’s a new asset class
Differentiating from those you currently have since they are virtual currencies some are even in the sector video game.
Advantage N°3: very high potential performance
1000, 2000, 10,000%!! the performance of some cryptocurrencies makes you dizzy. This is obviously what interests and attracts investors first: these crazy figures!! these incredible returns that cryptocurrencies are able to generate. If we have witnessed almost vertical take offs at certain times.
