The Cryptocurrency industry has received a lot of praise in recent years. Especially after hearing comments like ‘scam’ and ‘hoax’ from its commencement a decade ago. No one really believed that an entity could exist which could affect the world economy so much in recent years.
But, now they are being backed by top-tier leaders of the tech and economy world. For example, Elon Musk, the Tesla CEO himself, has supported Crypto Currencies like Bitcoin and Dogecoin on many occasions.
If you are someone planning to dip your toe in the Cryptocurrency water, fair warning; there is no coming back anytime soon.
This is one of the reasons why you should be absolutely prepared before you get into the entire thing. Gather as much information as you can, and gather your own research.
When researching anything, you need to know the negative aspects as well. This will help you better understand the market and whether investing is the right thing to do. Plus, it will help you take the needed calculated risk when you finally invest.
If you are planning on getting into the digital currency, all you need to do is to open an account in Bitcoin Loophole and navigate your way with ease.
Harsh Truth About Investing In Crypto
These are some of the harsh and raw truths about investing in the Cryptocurrency market. This is not to discourage your investment plan but to give you a clear view of the road to better understand the obstructions.
1. The Market Is Extremely Volatile
This is the first and foremost reason which could be both negative and positive. Yes, it does mean that you will get rich overnight, but you can also lose everything in just a few hours.
The prices are always fluctuating, and you wouldn’t know what to do but wait for it to come up. This is one of the reasons why people are so reluctant to invest.
2. Blockchain Can Be Hacked
Blockchain claims to be one of the safest technologies out there. This has also helped Bitcoin gain the reputation of being one of the safest Cryptocurrency.
However, recent cybercrime cases have shed light on the fact that Blockchain can be hacked through malware links, forking, and deep fakes. This is why you need to stop putting all your trust in Blockchain.
3. Mining Takes Money
If you plan to be a Bitcoin miner because you are interested in investing rather than mining, there is news for you.
Bitcoin mining is, first of all, not easy. Second, it is something which will cost you a lot. To get one coin, you have to buy advanced computers and solve very complicated math calculations.
All the while doing it really fast.
4. It Is Not Backed By Any Authority
All the while, Cryptocurrency is still a decentralized unit, which means it is not backed by any authoritative figure. This means if you are a victim of crypto hacking, there is no way you can get the cybercrime unit involved.
Since taxation still has a big question mark with certain Cryptocurrency, they are obligated to take a crime report for that industry.
5. Blockchain Can Slow Down Transactions
Blockchain is not the all mighty saviour, and it has its own flaws. They can slow the certification and transaction process, increasing the wallet fees. Wallet fees or dynamic fees are something charged from the sender on each transaction.
These fees can increase if the transaction time is too long. Thus, it might keep you safe, but it is still costing you in some way.
Make Wise Decisions!
The cryptocurrency industry carries along brokers and trading platforms. New traders can never go wrong with competent brokers. However, investing in cryptocurrency brokers doesn’t mean traders and investors should relax and wait for profits.
One should learn about different skills, currencies, commodities, and assets to avoid blind loss. It’s wise to gather information, through online and offline sources to ensure your brokers doesn’t rip you off the funds.
For honorary mentions, let’s not forget that it is still illegal in some places, which means having a Cryptocurrency account is a serious crime in some countries.
Plus, tech leaders and CEOs still believe it to be a ‘scam,’ and it is hard to shake off the feeling of suspicion.
Keep the above-mentioned points in mind when you invest in Cryptocurrency the next time. This doesn’t mean you should back away from investing; it just means you need to be careful.
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