)[source](https://pixabay.com/photos/cryptocurrency-bitcoin-coin-money-4590430/)
Well this is something that has quiet troubled many and been the subject of many debates as some feel it's best to store all your funds in cryptocurrency whilst others feel bank is more better as it gives more stability, so today I intend to dive into this topic proper if we should store our funds in cryptocurrency or not.
Well it's not really something had to decide, as with all things before making this decision is important to weigh the advantage and disadvantage of keeping our funds in cryptocurrency and after weighing this then you can make a sound decision one based on sound logic not on what others say.
So I won't really say storing funds in cryptocurrency is good or bad but I will be breaking down some great advantage or keeping our funds in cryptocurrency and some possible bad sides which no doubt will help us to see if it's best for us.
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Good sides of storing funds in cryptocurrency |
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One good merit of storing funds in cryptocurrency is due to the nature of crypto, this is a currency that is completely decentralized, no government or central authority controls it and this means no one can size our funds at will and how we choose to spend it is our choose and the transaction we carry out are in blockchain network which can't be messed with by anyone, cryptocurrency ensures no one can interfere with our financial choices or even manipulate it so to speak as every thing is done and recorded on an immutable blockchain which ensures for the integrity of the system we would be storing our money, so for this reason it's logical and one of the great benefits that comes from storing our funds in cryptocurrency.
Also another great benefits that comes from keeping our funds in cryptocurrency is that unlike in traditional banks where most times no interest is even added in our money infact here in the part of this world the banks even charge customers for keeping money with them which is not same with keeping money in cryptocurrency.
When we keep our funds in cryptocurrency we have high hopes of earning significant good returns, the price of cryptocurrency has been shown to appreciate accordingly with time which means that leaving our money there for a long term would almost guarantee significant appreciation much more than what we could possibly think of getting from keeping our money in banks so for this reason it's ideal we keep our money in cryptocurrency as the returns cryptocurrency could give us greatly outweighs even what we could get from puting our money in stocks or other traditional asset class.
Also there is something cryptocurrency gives us that we can never have from banks, that's absolute control, I mean there is nothing that could be compared to having control of where your money is, in banks we don't have that control, the control is with the bankers and the government and they can choose to freeze our asset when they feel like or hinder us from sending large sums of money but that's not the case with keeping our money in cryptocurrency.
In cryptocurrency one can choose to send any amount of money he wants without any fear and no middleman to micro manage and give permission before we do what we want to, elimination of intermediaries means the transactions in cryptocurrency are much faster and this also help guarantee for a cheaper cost of transaction which are all good benefits of keeping our funds in cryptocurrency.
Also cryptocurrency has great benefits in that they create opportunity for all, they are many third world country where infrastructure or financial institutions may not be available as a result these people or rather a vast majority of their masses becomes cut off from financial services but cryptocurrency solves this problem as with a device and internet access one get involved in the finance of this world and cryptocurrency makes this so, to that effect it's really good to keep our funds in cryptocurrency as it continues to revolutionize the finance of this world.
Well with all these good benefits, is there any bad side of keeping our funds in cryptocurrency, well let's see.
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Risks that comes with storing funds in cryptocurrency |
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Yes cryptocurrency offers great potential, great potential of making high returns but at the same time if you are not careful it could potentially render one broke in a considerably lesser time, that's why it's advised not to invest in cryptocurrency with borrowed money, how do I mean, cryptocurrency is a volatile asset, highly volatile this means that the market inasmuch as it could guarantee quick gains could quickly lead to incuring greater loss when market condition suddenly changes especially in the event of news.
Also some also invest in projects that often lead to loss of money, project that are scams or not strong enough in cases of extreme volatility one becomes bankrupt even, that's why if we are to keep money in crypto it should be in strong fundamental project, take Bitcoin for instance, despite the extreme volatility no one who has invested in it for long will be at loss, anyone who has invested in Bitcoin as little as atleast 6months back will still be in profit now how much more years back.
So yes due to the volatility of cryptocurrency is could lead to losses but then the only way we could incur lasting loss in good project is if we have short term mindset which means market condition may be unfavorable when we need the funds.
Also some could also suffer lose from keeping their money in crypto due to not trained properly, some lack awareness and as such they often fall victim to scammers and this leads to their wallets being exploited, well that's everywhere as even in banks if we misplace our personal info hackers could exploit it and steal all our funds. So the major issue here is security concerns for those who lack the technical know how in storage of cryptocurrency funds.
Another risk here is due to the fact cryptocurrency is some lands it's banned and the regulations of cryptocurrency keeps changing in most countries it seems nothing is guaranteed, so your money might be in cryptocurrency only for the next day it to be declared illegal which makes one a criminal suddenly just from having cryptocurrency as the government knowing they can't stop it's growth often impose rigid rules hence this scares people away, that's lack of proper regulation framework makes keeping our funds in cryptocurrency to be a major risk one we hope would be resolved soon.
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Conclusion |
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So in all there are a great deal of benefits that comes from keeping our funds in cryptocurrency and bad sides too is left for us after knowing this to make informed decisions and try to be educated on how to properly secure our wallets in an event we should to keep our money in cryptocurrency, and if we do we should ensure we are able to bear the risks that comes with it also, it's a personal decision.
