Buying and selling of cryptocurrencies is not new as it is done every day. You may be contemplating if it is something you should do or should not do. Well, buying and selling cryptocurrencies has its advantages which is why a lot of people engage in it.
Top Reasons to buy and sell Cryptocurrencies
This post will cover the top 7 reasons why you should buy and sell cryptocurrencies.
The first reason why you should buy and sell cryptocurrencies is that it incurs huge profits. It is not as if you cannot make a loss. In any trade, it is either profit or loss is made. When you make profits in selling cryptocurrencies, they are usually huge.
The reason for this is that most of these cryptocurrencies are volatile. Their values fluctuate and can go up or down at any point in time. Take the bitcoin (BTC) for instance, the value for 1 BTC in 2015 was just about $500. In 2019, the value of 1 BTC is at about $8,500. That’s a whopping 1700% increase in just 4 years. Imagine buying a BTC then and selling it now, you would make 17x your purchase amount; huge profit.
The Bitcoin is the cryptocurrency with the largest share in the crypto market which makes it the most traded.
This is always talked about; minimal fees are involved when buying and selling cryptocurrencies. For some cryptocurrencies, no fees are charged.
Cryptocurrencies attract minimal transaction fees because they are decentralized. You are not paying anybody or entity money for conversion or exchange. You are only charged little service fees by the exchange platforms and wallets you make use of.
This is a win-win situation for both sellers and buying as they earn more and pay less respectively.
The blockchain technology is a transparent one which implies that ledger of transactions can be seen by anyone. This keeps the network open-source so transactions recorded can be trusted by users. Despite that, the information of users remains private.
You can always trace the details of transactions you make with exchanges and people alike. With its transparency, it won’t be difficult to follow up on all your buying and selling transactions.
Cryptocurrencies are international in the sense that they can be used in any country. Better put, you can buy and sell cryptocurrency to anyone in any country. This means there is an unlimited source of customers if you choose to sell cryptocurrencies.
Also, these cryptocurrencies can be exchanged into different currencies. No matter the currency your country uses, you can buy cryptocurrencies with it and exchange them for it.
Cryptocurrencies work on a new technology network known as the blockchain. The blockchain is known as a very secured digital ledger, it is believed that the technology is impossible to hack. This is because it is decentralized and is controlled by different network nodes; over a thousand of them.
With this, cryptocurrencies cannot be destroyed or duplicated, unlike fiat currencies. Cryptocurrency miners work to verify every transaction on the blockchain so it is relatively impossible for anyone to carry out a fraudulent transaction.
When you create a crypto wallet (for storing cryptocurrencies), you get private keys and passwords to secure your wallet. If you choose to buy and sell cryptocurrencies, you are at a low risk of getting robbed of your money. You also cannot receive fake cryptocurrencies as block transactions cannot be altered after being confirmed.
There are 180 fiat currencies in the world at the moment but in the crypto world, there are 2,000+ cryptocurrencies. That is a whole lot and you can choose to buy and sell whichever one of them you want. Consider it as a very big market where there are so many different goods to buy and sell, all you need to do is to choose any one of interest.
The fact that few cryptocurrencies like Bitcoin, Litecoin and Bitcoin Cash are much more valuable than the others doesn’t mean they are the only ones that can be traded. Every cryptocurrency has a value that can be exchanged for its equivalent in fiat currency. You can buy and sell multiple cryptocurrencies, not just one or two.
In addition to that, you can exchange one cryptocurrency for another before you sell. For example, you can exchange Bitcoin for Ethereum, Ethereum for Litecoin and so on. Many online exchanges allow this.
Yep! You read that right, it is easy to buy and sell cryptocurrencies. All you need to do to trade cryptocurrencies is to create a wallet and sign up on an exchange platform. You do not pay for these wallets, they are free and they are many online platforms you can create them.
A popular one is Coinbase; it takes just a few minutes to create a wallet with them. After that, you get a wallet address where you can send/receive cryptocurrencies. Coinbase and a few other exchanges allow users to buy and sell cryptocurrencies in the easiest of ways. You certainly do no work other than to initiate a buy or sell request when intended.
Aside from exchanges, you can sign up on peer-to-peer platforms where you can directly buy and sell from other people. Also, on the Internet, there is so much information about trading cryptocurrencies that anyone can look up and know where to start from.
If you’ve chosen to trade cryptocurrencies, you could be on your way to making thousands of dollars. In the same sense, you could also be on your ways of losing thousands of dollars if not careful. You should trade with caution and don’t put in too much money; at least not more than you can afford to part with.