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Here is a deeper look at the difference between cryptocurrencies and the current banking system (fiat money). Meanwhile, in case one is aware of the crypto market and wants to buy Bitcoin in Canada, they can do so on netcoins.
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HOW IS THE CURRENT BANKING SYSTEM DIFFERENT FROM CRYPTOCURRENCIES?
With the current banking system providing a lack of returns across several countries, several investors are looking for alternate options for their investments. One option is the cryptocurrency market. Bitcoin is the most famous cryptocurrency, and hit the market first in 2009. Since its inception, bitcoin has given a staggering 48,22,525% return. Here is a deeper look at the difference between cryptocurrencies and the current banking system (fiat money). Meanwhile, in case one is aware of the crypto market and wants to buy Bitcoin in Canada, they can do so on netcoins.
Difference between cryptocurrencies and current banking system (fiat money) Bitcoin has changed the investment rationale since its inception in 2009, as it became the first cryptocurrency to allow secure and cheap transactions without intermediaries. The predominant difference between cryptocurrencies and traditional fiat money is that cryptos are a decentralized currency, while the traditional banking system is monitored by a central government. As a result, the cryptocurrency market is immune to government control and interference.The other major difference between cryptocurrencies and the current banking system is that cryptos are extremely volatile, whereas the banking system is less volatile and has greater security. If bitcoin is taken for example, it has given outstanding returns since its inception, but it has come at the cost of violent fluctuations in its value.For example, on February 8 the value of bitcoin surged after electric car manufacturer Tesla mentioned that it had bought Bitcoins worth $1.5 billion. However, its value dropped a whopping 10 percent a few days after, when Tesla promoter Elon Musk tweeted that the price of bitcoin was extremely high. Therefore, cryptocurrencies are very volatile, and its price may change depending upon how famous investors influence the sentiment of the market.
Importance of choosing the right broker while dealing in cryptocurrencies While it is important to choose the right broker for any investment, whether in equity or elsewhere, it is more so for cryptocurrencies. This is because cryptocurrencies are not regulated by a central government, unlike banks. For investors wondering in Canada how to deal in cryptocurrencies, Netcoins is a trustworthy broker. Not only can one buy bitcoins on Netcoins, but also other altcoins such as XRP, which are becoming increasingly famous. For investors wondering how to buy XRP in Canada on netcoins need to first log in to the netcoins website and follow the instructions.As per the instructions, first you need to provide your personal information to open the account. Once your details are verified, you can transfer money into the wallet and begin trading.
Considering the increasing popularity of cryptocurrencies in the world, the belief amongst several experts is that fiat currencies' existence could be in danger as these crypto tokens could be used as a common medium of exchange in the future. However, this is easier said than done as several countries could be hesitant to make this transition, because of the lack of monitoring of these tokens. Source Credit: https://netcoinscanada.blogspot.com/2021/08/how-is-current-banking-system-different.html
