Every day you open the internet: YouTube, or any video streaming platform, you will see a rich guy talking about cryptocurrency.
It is one of the things that takes over our life. It gives people the belief that normal trading isn’t fun anymore. Bitcoins are a quick way to get rich and manipulate people’s minds.
This has led people to lose their financial assets, hard-earned money, so before you invest in Bitcoins or go gaga over Elon Musk.
You need to know –
What is Cryptocurrency?
Cryptocurrency is the digital or virtual currency secured by cryptography, ensuring you cannot use the money for counterfeiting. Many cryptocurrencies are decentralized networks based on blockchain technology, ensuring they cannot be manipulated or hacked.
One advantage of cryptocurrency investing is that there is no government intervention. This allows people to invest highly to create an alternative asset.
Even though returns are quite high in investing in digital currency, the grass is never greener on the other side. It means that there are potential risks associated with the currency.
To learn more about cryptocurrency, you can visit Apple’s website to download Roboforex. They have all the necessary information regarding Bitcoins.
Risk Of Investing in Cryptocurrency
As discussed earlier, as the government does not take responsibility for investment, people can invest as much as possible. But greater investment comes with greater risks (we aren’t Elon Musk).
Here are a few potential risks –
Potential Introduction With Criminals
Look around the news, and you will see all the notorious activities are done through bitcoins. This increases the risk when you think of investing in digital currency.
There is a chance that some cybercriminal guy is trying to breach your security and steal your assets. Though protected by blockchain technology, the dark web has equipped people to breach the wall through your digital footmark.
Therefore, investing in the stock exchange is better than entering the crypto market. Greed can lead to the loss of all your assets.
Market Manipulation
We all felt it after the hype created by Elon Musk, which increased the value of cryptocurrency. This kind of market manipulation is quite common in the crypto market.
With one tweet or comment, the prices of the coins can go up and down substantially, leaving the investors at great risk.
Further, there is a high risk of market crashes as the currency prices can drop easily. This was seen after Tesla’s owner denounced Bitcoins, and the price fell from $54,819 to $45,700.
So, it is safe to say you don’t have to invest depending on what a billionaire will comment or tweet online.
Mining Isn’t Fun Anymore
Well, it is true even in several states in the USA, mining of Bitcoins is considered illegal, as it threatens the national currencies.
Hence, countries in the middle east and China do not see mining as a valuable option.
Further, mining has a devastating impact on the environment. The energy required to mine a Bitcoin can take up to the energy consumed by a single country. This can put risk in the coal and gas resources shortly.
Especially after the condition of Europe, the prices of electricity and gases are rising. It is wise to enter the stock market rather than the crypto market.
Anonymity Is Myth
When you make a digital transaction, you leave behind your footprint, easily trackable by any investigative organization.
Consequently, if someone made you believe that the government can’t see that your investments and crypto are pseudonymous, they are wrong. The FBI can track the proof you leave behind and view the financial transaction from your account.
Hence, you can become rich from normal trading stocks if you are into anti-social activities. Do not risk your assets unnecessarily.\
In The End
While concluding, we suggest you look for mutual funds, EFTs, or NFTs, as they are safer options for investing. They have low investment rates and give good annual returns for a sustainable life.
Further, you can keep your cash safe and secure, as the chances of market crashes are minimal.
