The Risk And Reward Of Investing In E-Currencies


E-currency is commonly referred to as cryptocurrency. Cryptocurrency is not tangible; on the contrary, it is a kind of intangible asset which is slowly and gradually being introduced into the finance market.

The currency itself is very similar to the local currency that we use; however, the difference lies in the fact that it is not authorized by the state or the government.

Cryptocurrency is not stable, especially when compared with the normal paper currency we use. However, despite this, millions of individuals all over the globe use the cryptocurrency for online shopping and the like.  

Application Of Cryptocurrency

“Cryptocurrency can be used just like real currency and is an alternative way of exchanging which is slowly gaining ground in the market.”

Cryptocurrency can be used just like real currency and is an alternative way of exchanging which is slowly gaining ground in the market. As we mentioned previously, cryptocurrency does not physically exist. This type of currency is stored and developed electronically. The currency can be stored on our websites or computers. Cryptocurrency is very helpful when it comes to virtual products such as internet services, domains and hosting. However, this isn’t to say that E-currency or cryptocurrency cannot be used for the buying of services and physical goods. 

Some Well-Known Cryptocurrencies 

Some common cryptocurrencies that are currently in operation throughout the world are: 

  • Primecoin (Introduced in 2013) 
  • Bitcoin (Introduced in 2009) 
  • Mastercoin (Introduced in 2013) 
  • Ripple (Introduced in 2013) 
  • Namecoin (Introduced in 2011) 
  • Litecoin (Introduced in 2011) 
  • Dogecoin (Introduced in 2013) 
  • Auroracoin (Introduced in 2014) 
  • Peercoin (Introduced in 2012) 

“Though there is a lot of debate as to whether cryptocurrency should be used or not.”

Why Use Cryptocurrency? 

Though there is a lot of debate as to whether cryptocurrency should be used or not, with some analysts considering it a blessing and many others vehemently against its use. Similarly, cryptocurrency is not a general term anymore; rather there are many types of such currencies which fall under it, with each having its own advantages and disadvantages. However, as a neutral observer here I will share with you the advantages as well as the disadvantages of cryptocurrency. In other words, the rewards and risks associated with cryptocurrency. 

The Key Advantages Of Cryptocurrency

There are many advantages associated with the use of cryptocurrency. However, to keep the subject simple and accessible, I will be discussing only the major advantages here:

  • Payment with cryptocurrency is both simple and fast. As a user of this currency you do not need to indulge in the hassle of typing in all the details of your credit or debit card. Similarly, you do not need to get any kinds of documents signed. All you need to know is the wallet address of the organization or person to whom you plan to transfer the currency. The transaction of cryptocurrency is very fast and is done within seconds. 
  • In the majority of situations, the transaction of cryptocurrency is safe and secure, particularly if you are using military-grade cryptography. Nobody can make payments through the wallet accept the owner. 
  • In the case of cryptocurrency there is no chance of any kind of chargeback, as is sometimes done in the case of credit cards. After the initial transfer of the payment there is no chance of reversal. The point here is that fraud cannot take place when using cryptocurrency. 

And The Disadvantages

Well, it can’t all be positive, can it? The disadvantages of cryptocurrency are as follows:

  • The payment cannot be reversed; this can serve as an advantage but can just as easily be a major disadvantage. Any mistake during transfer can cost you big time.  
  • There is no centre point in the transfer of cryptocurrency. 
  • Cryptocurrency is not accepted everywhere which means that not everything can be bought with it. 
  • Cryptocurrency cannot be recovered if you lose your wallet. There is no governing body that you can complain or get assistance from if such problems should arise. 


E-currency may overtake “real” money in the finance market in the future, but if it’s going to happen it’ll be a long time away. You can get a better insight into cryptocurrency by reading this article by CNBC.