Digital currencies or default over the Internet one of the main things that have emerged recently, where he began the world of digital currencies at the first currency appearance in 2009 is considered a currency Alpetkoan and later other currencies appeared such as: Coin Lite Coin and Coin Alaithiriom and other digital currencies .
It is possible for any individual to buy, store and sell encrypted digital currencies through his smartphone in exchange for any currency such as the euro or the dollar and then use it over the Internet to buy products such as travel tickets or hotel reservations, etc., but there are advantages and disadvantages to trading digital currencies will We present it to you during the following lines.
Capital growth in the cryptocurrency world is one of the most attractive ways for investors who wish to trade and speculate through high-risk investments in bitcoin or promising alternative digital currencies (which are other digital currencies ). ( Read more on how to buy Bitcoin or Ethereum )
As for the most stable and larger currency, Bitcoin digital currency, and it increased during the last period in 2017, by up to 300% and made a large profit, but there is a large area of integration of some investors and alternative digital currencies.
Advantages and disadvantages of trading digital currencies
First: the advantages
Bitcoin is one of the digital currencies that appears to be stable in annual volume and growth rates, and there is reason to believe that this trend will continue.
For example, the price of Bitcoin over the past year (2016) has increased about 4 times from 450 to 1,700 dollars, which means that the profit rate is high and means that the risk is also high.
Individuals' confidence in cryptocurrencies comes from being long and heavy inexpensive currency.
The market value and the number of users increased continuously until the size of the digital currency market exceeded $ 170 billion.
Bitcoin has a lot more liquidity and trading volume compared to any other cryptocurrency .
A common issue in the world of cryptocurrency trading is the possibility of transactions with software and technical devices.
The greater the financial and political stability creates a state of stability in cryptocurrency trading.
Virtual digital currencies are free from the excessive pressure and control affecting the investment world.
Digital currency storage is completely free from government and central bank bureaucratic institutions.
Bitcoin and cryptocurrencies in general rely on decentralization.
There is no excessive control over digital currencies because the country does not appear negatively on the scene at all.
Second: the disadvantages of trading digital currencies
The payment system could have a negative effect on the price due to the high volatility of the cryptocurrency prices.
The risks that investors are exposed to, especially those who want to quickly sell digital currencies, may affect their investments due to the volatility of the market.
Difficulty storing digital currencies in trading platforms, it is necessary to know the use of special wallets in virtual digital currencies, and it requires little experience in using modern technologies.
Challenges with transferring, trading or exchanging digital currencies into cash.
The sharp rise in the price of Bitcoin and a number of other currencies in recent times.
Some rapid growth is offset by rapid decline.
High volatility for some cryptocurrencies such as Ethereum or NEO.
Difficulty trading for digital currencies for short-term investments.
Wow