Cryptocurrencies- Knowing the Pros and Cons. By Mark Darko


By Mark Darko ( Ghana)

Sequel to last week’s discussion that highlighted the nature and general overview of cryptocurrencies and how they operate, this week’s article seeks to address the pros and cons associated with crypto investments.

It is important to understand that cryptocurrency investment is no different from any other high-risk investment in terms of its practical application.

This means that whether or not you should invest in cryptocurrencies is dependent on your appetite for risk and investment objectives.

Are you concerned about drawbacks? If you answered yes, you should also be aware of its benefits, which will assist you in making an informed decision on whether or not to invest in cryptos.

Before you invest, you have the right to know everything there is to know about them. There are several advantages and disadvantages of investing in cryptocurrencies that you should be aware of. Security and protection are two of the most critical.

Let’s consider the advantages and disadvantages


Advantage- Fast and Inexpensive

It only takes a few minutes to send any amount of money. Regardless of the amount or the destination. Making a move to another part of the world through your bank can be extremely expensive. When done in cryptos, the cost is either negligible or non-existent. A crypto currency such as Bitcoin can be sent to any nation on the planet. Like the Internet and e-mail, there is absolutely  no geographical limitations. This, combined with the assurance of protecting its users’ rights, makes cryptocurrencies the first truly global currency.

The right to make payments is the most significant benefit that cryptocurrency investors gain from participating in the trading market. They can send and receive payments at any time, from anywhere, and with no restrictions. Also, almost all payment options are available, so you can easily choose one to get your hands on your cryptocurrency.

Advantage- Decentralized Issuance

As explained in our previous discussion, cryptos cannot be regulated or valued by any government or central bank, and cannot be created or distributed by any government or central bank. The currency is depoliticized because it is created by the people, removing the power that FIAT money has over the population. There is no third-party interference. No one has the authority to freeze, charge, or demand your coins. They can’t be stolen, and the government can’t seize them under any conditions or in any circumstances.

Crypto transactions do not necessitate the disclosure of any confidential information, unlike bank wire transfers via the SWIFT platform.

They instead use two keys: a public and a private key.

Advantage- Lower Fraud Risks and Transparency

Cryptocurrencies enable buyers to complete transactions without disclosing any confidential financial information to the seller, unlike the traditional bank transfer transactions where the banks usually demand an avalanche of paperwork for every single transaction.

Leading cryptos like bitcoin are just like digital cash that hackers can’t easily get their hands on. At the same time, your true identity is hidden for good. This goes a long way toward avoiding targeted data breaches. In the case of BTC, consumers benefit from anonymity because all of their data is kept confidential and stored using blockchain technology. Transparency, on the other hand, allows users to conduct transactions in their own time and with complete freedom.

The great thing about crypto is that it gives users complete power over it, as well as the ability to keep their coins safe. Another important point is that since the whole transaction is built on blockchain technology, users should expect a relatively high level of security.

Disadvantage- Volatility

Cryptocurrency prices are extremely volatile, rising and falling at a rapid rate. Speculators want to profit from it, but genuine investors see it as too dangerous, so no one invests in them.

One of the most significant drawbacks of investing in this market is the lack of regulatory oversight.

Cryptocurrency laws and taxes differ from country to country and are often ambiguous or contentious. A lack of regulations, unfortunately, can lead to fraud and scams.

Disadvantage- Risk of loss

Your money is effectively “gone” if a hard drive crashes or a virus corrupts records, and the wallet file is corrupted. There’s nothing that can be done to get it back. These coins will remain orphaned in the scheme indefinitely. This has the potential to bankrupt a wealthy investor in a matter of seconds, with no means of recovering. The investor’s coins will be forever orphaned as well. There is no way to safeguard your coins from human or technological errors. If you mess up your crypto wallet, you will lose everything instantly. You can’t get it back, and they’re gone forever unless you’ve backed up your wallet with a backup phrase code.

Disadvantage- New Economy and Consumer Protection

The cryptocurrency framework may have bugs that are yet to be discovered. Since this is a relatively new scheme, if they were widely implemented and a bug was discovered, it might result in enormous wealth for the exploiter at the expense of the cryptocurrency economy. There is no governing body in charge of their functionality. As a result, if you have any concerns or problems, you will be unable to complain to anyone else.

Market Highlights


US$GH¢ Buy 5.8535 Sell 5.8593

GB£GH¢ Buy 8.1170 Sell 8.1257

CHFGH¢ Buy 6.4100 Sell 6.4164

AUD$GH¢ Buy 4.3580 Sell 4.3627

CAD$GH¢ Buy 4.6792 Sell 4.6837

JP¥GH¢ Buy 0.0534 Sell 0.0534

NZDGH¢ Buy 4.1811 Sell 4.1864

ZARGH¢ Buy 0.4102 Sell 0.4106

EU€GH¢ Buy 6.9572 Sell 6.9641

CHN¥GH¢ Buy 0.9098 Sell 0.9107

GH¢CFA Buy 94.1912 Sell 94.2846

GH¢NG₦ Buy 70.3521 Sell 70.3658



Bitcoin $51,761.07 ?3.97%

Ethereum $3,921.23 ?1.39%

Binance Coin $499.85 ?1.44%

Cardano $2.88 ?0.67%

Ripple $1.32 ?5.88%

Dogecoin $0.3116 ?4.31%

Polkadot $30.64 ?13.39%

Uniswap $29.80 ?4.05%

Solana $142.53  ?1.63%

LUNA $33.44 ?11.65%

Chainlink $32.94 ?4.87%

Bitcoin Cash $748.09 ?6.55%

Litecoin $226.10 ?6.22%

MATIC $1.69 ?4.46%

Internet Computer $86.09 ?9.05%

Ethereum Classic $72.07 ?5.11%

Stellar $0.3927 ?5.37%

THETA $8.08 ?4.64%

Vechain $0.1516 ?4.14%

Filecoin $116.93 ?24.93%

Avalanche $48.15  ?4.50%

TRON $0.1037 ?1.78%

PancakeSwap $24.33 ?3.80%

?Bloomberg USDGHS Cross Rate – *6.0568* (YTD – ?️+3.64%)


US$GH¢ Buy 5.9000 Sell 6.1200

GB£GH¢ Buy 8.1402 Sell 8.4915

EU€GH¢ Buy 6.9874 Sell 7.2950


UNIL ➡Gh¢5.90 ?+4.61%

GOIL ➡Gh¢1.57 ?+1.29%


No losers for today

〽Inflation rate in Ghana  ➡  9.00% (?️+15.38%)

?Ghana Reference Rate ➡ 13.51% (?-0.30%)

✳Policy Rate in Ghana ➡ 13.50% (?-7.41%)


14 – Day Discount Rate 14.4196% Interest Rate 14.5000%

56 – Day Discount Rate 14.1836% Interest Rate 14.5000%

91 – Day Discount Rate 12.0741% Interest Rate 12.4499%

182 – Day Discount Rate 12.3785% Interest Rate 13.1952%

364 – Day Discount Rate 13.8670% Interest Rate 16.0995%

1 Year Fixed Note Interest Rate 16.5672%

2 Year Fixed Note Interest Rate 17.2500%

3 Year Bond Interest Rate 17.7000%

5 Year Bond Interest Rate 18.8000%

6 Year Bond Interest Rate 19.2500%

7 Year Bond Interest Rate 18.1000%

10 Year Bond Interest Rate 19.7500%

20 Year Fixed Rate Bond 20.2000%


7 Year Bond Coupon Rate 7.7500%

12 Year Bond Coupon Rate 8.6250%

20 Year Bond Coupon Rate 8.8750%

?Average Petrol & Diesel Price Per Litre – Gh¢6.38 (?️+2.41%)


*Dow Jones Index?⛽ 35,443.82 +131.29 +0.37%

*S&P 500 ? 4,536.95 +12.86 +0.28%

*Nasdaq Index??  15,363.52 +32.34 +0.21%

* NYSE Composite Index 16,909.72 -16.99 -0.10%

*London FTSE 7,138.35 -25.55 -0.36%

*Germany DAX 15,781.20 -59.39 -0.37%

*Japan NIKKEI 225 29,128.11 +584.60 +2.05%

*Tokyo TOPIX Index 2,015.45 +31.88 +1.61%

*Hong Kong HANG SENG 25,901.99 -188.44 -0.72%

*Shanghai Shenzhen 300 4,843.06 -26.35


*S&P/ASX 200 Index 7,522.91 +37.17 +0.50%

*Bloomsberg EU 500 308.96 -1.95 -0.63%

*France CAC All-Tradable 5,147.27 -54.01 -1.04%

*Dubai DFM General Index 2,913.38 +1.01 +0.03%

*MOEX Russia Index 4,001.70 +10.93


*FTSE/JSE South Africa 60,106.72 -250.77 -0.42%

*Nairobi SE 20 Share 2,025.37 +0.97 +0.05%

*Nigeria SE Main 39,261.01 +8.82 +0.02%

*BBG EMEA World Index 164.77 -0.50 -0.30%

*GSE Composite Index 2,753.58 +2.33 +0.08%

*GSE Financial Index 1,929.78 0.00 0.00%


MTNGH ➡Gh¢1.24 ?+93.75%

GGBL ➡Gh¢1.50 ?+66.67%

FML ➡Gh¢1.65 ?+52.78%

SOGEGH ➡Gh¢0.95 ?+48.44%

TOTAL ➡Gh¢4.20 ?+48.41%


CPC ➡Gh¢0.02 ?-33.33%

UNIL ➡Gh¢5.90 ?-28.83%

ACCESS ➡Gh¢3.49 ?-20.50%

ETI ➡Gh¢0.07 ?-12.50%

SIC ➡Gh¢0.07 ?-12.50%


*GSE Composite Index 2,753.55 ?+41.82%

*GSE Financial Index 1,929.78 ?+8.25%



Databank EPAcK ?+18.91%

Republic Equity Trust ?+12.63%

SAS Fortune Fund ?+16.97%


EDC Balanced ?+20.32%

Databank Bfund ?+16.31%

Elite Mutual Fund ?+8.89%

Fidelity Balanced Trust ?+16.97%

CCMF ?+12.83%

CDH Balanced Fund ?+8.37%

CM Fund ?+10.48%

Dalex Vision ?+8.89%

Plus Balanced Fund ?+13.83%

Republic Future Plan Trust ?+10.49%

UMB Balanced Fund ?+7.38%

Databank EdiFund Tier 2 ?+15.39%


EDC Fixed Income ?+10.53%

Databank Mfund ?+12.47%

Fidelity Fixed Income Trust ?+12.20%

Financial Independence Fund ?+10.13%

Fixed Income Alpha Plus ?+12.35%

Nimed Fixed Income Fund Tier 1 ?+10.23%

Nimed Fixed Income Fund Tier 2 ?+11.09%

Plus Income Fund ?+11.93%

STANLIB Income Fund Trust ?+11.30%

Databank EdiFund T1 ?+13.67%


SAS Midas Fund ?+10.13%

Stanlib Cash Trust ?+9.02%

EDC Money Market Fund ?+9.20%

Republic Unit Trust ?+10.18%


*Brent Crude $/barrel⛽ $72.61 -0.42 -0.58%

*Natural Gas ? $/million BTUS $4.71 +0.07 +1.53%

*Gold ? $/troy ounce $1,833.70 +22.20 +1.23%

*Silver ? $/troy ounce $193.00 -1.35 -0.69%

*Corn ? $/bushel $524.00 -1.50 -0.29%

*Cocoa ? $/metric ton $2,654.00 +43.00 +1.65%

*Coffee ☕ $/pound  $193.00 -1.35 -0.69%

*Sugar? $/pound $19.62 -0.28 -1.41%

*Lumber $/1000 board feet $639.20 +63.00 +10.93%

Rubber  USd/kg $164.90 +1.90 +1.17%

Sources: Bank of Ghana, Bloomberg, GSE, Reuters, Citifm, Doobia, BBC, Graphic Business, Ghana News Agency.

Mark Darko

Investment Banker

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