Crypto’s Advantages and Disadvantages

Crypto is a unique currency. It’s completely virtual. Crypto is unsupported by any central bank or other authority. It’s not the official currency of any country. Yet all of these are both advantages and disadvantages. Whether or not crypto is an advantage for you is dependent on your situation. Crypto have several advantages over conventional currency: 1. Crypto can’t be physically stolen, generally. There is nothing physical to steal. In theory, however, someone could force you at gunpoint to send your cryptos to someone else. 2. It’s possible to avoid taxes. The onus is on the taxpayer to be honest about crypto transactions. There are many disagreements regarding the government’s ability to track cryptos through the system. Most of the investigative activity regarding cryptos is centered on major crimes, such as drug trafficking. 3. Crypto is extremely flexible. You can pay anyone in the world at any time. Holidays, exchange rates, borders, and 10 A Quick, EZ Guide to UNDERSTANDING Crypto the time of day are irrelevant. Crypto hasfar greater flexibility than any other type of currency system. 4. There are no transactional costs. As there is no central authority, transactional costs are unnecessary. All of the computers on the system, including your own, are doing the heavy lifting. There’s no one else to pay. You could send your child a million dollars’ worth of cryptos without it costing a single penny. Try doing that with yourlocal bank or PayPal. • However, providing a small transactional fee will guarantee that payments are processed more quickly and most trusted exchanges charge fees fortheir services. 5. Privacy is maintained. Your personal information isn’t required as part of the transaction. There’s no risk of identity theft. The entire process is encrypted. Keep in mind that it’s not entirely anonymous. All transactions are recorded and posted for anyone to view. However, your name isn’t publicly associated with yourtransactions. 6. Transactions cannot be reversed. This is good news for merchants,