How Safe Is Cryptocurrency Investment
In the era where digital currency has been the new way to pay, it’s only natural that people compete to be the first to invest in this revolutionary discovery that will change the way we handle money in daily life. You may have heard of things like Bitcoin investment, Litecoin trading and such but how safe are investments involving these new age, digital currencies?
Like any other investment, cryptocurrency investments have their share of up and downs, when it comes to market and trading. However, these digital currency tradings are far more risky and unsafe compared to trading hard cash and blocks of stock. Here are some of the reasons why.
Pros and Cons: Reasons Of Investing In Cryptocurrency
#1 Open to Hackers
Like all things digital, cryptocurrency just a value that floats about in the matrix of code and general cyberspace. As such, anyone with internet access can easily hack into your cryptocurrency accounts, draining you of your investments in just seconds. And, in open digital payment protocols such as Ripple, any of your stored digital currency can easily be moved into a remote account, never to be seen again.
#2 Unstable Market
As you may have heard, most cryptocurrency markets have been seriously fluctuating and there is no telling how far they would rise or fall at any given time. Besides, the trading of such cryptocurrencies are backed by traders who are trading based on a gut feeling and emotions, as they are unable to predict how the rise and fall will be, hence, the market is comparatively more volatile than playing with actual stock.
#3 Zero Prediction
This zero prediction predicament is a result of the highly turbulent market of digital cryptocurrency. Traders who trade on Bitcoin, Litecoin and the likes are unable to make predictions of how the market will react, day after day, thus making it harder for them to take calculated risks with their investments. This could leave you dealing and staking your digital investments blindfolded, which is never a good thing.
#4 Multitude of Scams
There are a ton of scams that have been designed around cryptocurrency and because of its digital nature, it has been much more convenient for scammers to pose as cryptocurrency investment experts, only to abscond with your cyber money. Be wary of anyone who claims to be a digital currency expert, especially if they need you to transfer your Bitcoins to them so that they can help you to “invest”.
#5 No Long-Term Value
Unlike physical assets like land or houses, cryptocurrency have no real value in the long run. Should the people behind blockchain decide to close up shop tomorrow, all your digital assets will be nothing but a set of numbers in cyberspace, with no actual value. Besides that, it is the technology that has the value, not so much the digital currency itself. You may be better of investing in stocks of blockchain companies than in blockchain itself.
Cryptocurrency itself is something that is merely a number on a screen and it is advisable not to invest too much in something as volatile as a digital value in all of cyberspace. Once the fad dies down, you will find that the value of your digital currency will depreciate fairly quickly and soon will be valued at close to nothing.
The security concerns surrounding such cryptocurrency investments are also very real and alarming. Not only would you be losing your money to hackers and scammers but each report of a hack or scams further lowers the value of whatever digital assets you have left. Be wary not to click into any fishy emails about crypto investments and if you do find such emails in your inbox, run them by our Email Lookup and search through public records to see who the email belongs to.
Disclaimer:
The above is intended for informational purposes only and does not constitute a legal advice or specific recommendations in any way.
