Crypto’s Advantages and Disadvantages

Crypto is a unique currency. It’s completely virtual. Crypto isunsupported by any central bank or other authority. It’s notthe official currency of any country. Yet all of these are bothadvantages and disadvantages. Whether or not crypto is anadvantage for you is dependent on your situation.Crypto have several advantages over conventionalcurrency:1. Crypto can’t be physically stolen, generally. There isnothing physical to steal. In theory, however, someonecould force you at gunpoint to send your cryptos tosomeone else.2. It’s possible to avoid taxes. The onus is on the taxpayerto be honest about crypto transactions. There are manydisagreements regarding the government’s ability totrack cryptos through the system. Most of theinvestigative activity regarding cryptos is centered onmajor crimes, such as drug trafficking.3. Crypto is extremely flexible. You can pay anyone in theworld at any time. Holidays, exchange rates, borders, and10A Quick, EZ Guide to UNDERSTANDING Cryptothe time of day are irrelevant. Crypto hasfar greaterflexibility than any other type of currency system.4. There are no transactional costs. As there is no centralauthority, transactional costs are unnecessary. All of thecomputers on the system, including your own, are doingthe heavy lifting. There’s no one else to pay. You couldsend your child a million dollars’ worth of cryptos withoutit costing a single penny. Try doing that with yourlocalbank or PayPal.• However, providing a small transactional fee willguarantee that payments are processed more quicklyand most trusted exchanges charge fees fortheirservices.5. Privacy is maintained. Your personal information isn’trequired as part of the transaction. There’s no risk ofidentity theft. The entire process is encrypted. Keep inmind that it’s not entirely anonymous. All transactions arerecorded and posted for anyone to view. However, yourname isn’t publicly associated with yourtransactions.6. Transactions cannot be reversed. This is good news formerchants, but may be a disadvantage for consumers oranyone that sends crypto to the wrong wallet.11A Quick, EZ Guide to UNDERSTANDING Crypto7. The crypto code is open source. There are no secrets,otherthan the identities of the parties involved in thetransactions.It’s easy to see why cryptos are useful in certain situations.You have a greater degree of privacy and a lack oftransactional costs. Crypto can be used at any time and onany day. You can still make or accept a payment