Some good reasons why you should go for cryptocurrency and invest & trade in cryptocurrencies!

Cryptocurrencies are digital assets maintained by a network of computers that can be used as a payment method or can be invested as well. Due to the rise in popularity, both cryptocurrencies and crypto exchange development company in Kolkata is gaining traction. Cryptocurrencies maintained by the network of computers make use of cryptography for authenticating transactions which makes the assets safe and secure.

What makes cryptocurrencies so popular?

According to the best cryptocurrency development company in India, cryptocurrencies can appeal to most for –

•    Having the potential to become future money which makes them more valuable.
•    Decentralized with no control of central financial bodies.
•    Working on blockchain technology where transactions are recorded in a secure manner.
•    Holding long-term undertaking and serve as a mode to move the capital from one place to another.

Cryptocurrencies work on blockchain technology which is a decentralized technology spreading across a network of computers managing and recording transactions.

Why should you go for cryptocurrency?
According to companies offering crypto trading exchange development services, these digital assets are best used as a medium of exchange same as the fiat currencies. The only difference between the two is that crypto is only designed for the exchange of digital information. However, the good thing about cryptocurrencies is that it uses cryptography which is best known for security that makes it difficult to counterfeit. Apart from being a secure asset, cryptocurrencies have been rapidly gaining public interest for –
•    Producing incredible returns
Cryptocurrencies are new to the market, but so far it has managed to prove their potentials for being more profitable compared to fiat currencies. With fluctuating prices, cryptocurrencies do behave in a different manner and tend to show huge returns in a very short period of time. However, crypto might be a bit risky but such incredible returns are quite hard to be found in other or traditional financial assets.

•    Being highly volatile
Being new to the market cryptocurrencies have already experienced volatility due to huge amounts of short-term tentative interest. The price of Bitcoin rose as high as $19,378 and then plunged to a low of $5851 as was evident between October 2017 and October 2018. Compared to traditional currencies cryptos are a bit unstable but the volatility part of this digital asset is what makes it more interesting and exciting. According to an altcoin development company, it would be best to go with your research work and a risk management strategy before investing in cryptocurrencies.

•    Being fraudproof
When the digital assets or the cryptos are mined all confirmed transactions are stored in a public ledger which is based on a distributed ledger technology or DLT. This way the identities of crypto owners are highly encrypted ensuring the legitimacy of a record stored in the network. Since cryptocurrencies are decentralized, accept you neither the government nor bank will have any control over the asset.

•    Being high on liquidity
As depicted by a cryptocurrency development company, liquidity is one of the prime reasons which make cryptocurrency popular. Being high on liquidity it becomes easy to purchase or sell the assets at a price matching or close to the market rate. However, cryptos are developed to be high on liquidity which makes it easier to buy or sell on the trading platforms using a wide variety of tools and trade strategies.

Cryptocurrencies are decentralized assets making them difficult to control by centralized bodies like banks, and as it is blockchain-based it is only maintained by a peer-to-peer or P2P computer network made up of users’ machines or “nodes”. According to the best cryptocurrency development company in India, cryptocurrencies can be effectively used as payment methods, exchanged with other cryptos, and can be invested with as well.