We simply cannot talk about what’s going on in the world, especially a digital one, and not mention cryptos. They became such an essential part of our lives, and not just from financial and economic aspects but in general, as the technology used for cryptocurrencies, the blockchain, is now used in many industries. Furthermore, the whole concept of digital currency revolutionized and changed our perception of money, and how such a gigantic role banks and governments have in all that, and by creating something new, something independent like crypto, that will soon become a thing of the past. But, most people are already familiar with these facts, and what troubles them the most is regarding crypto trading.
Yes, one can make large profits by actively participating in the crypto market, but don’t think that no previous knowledge and experience is needed. Remember, this is a new thing, and the whole crypto market, even though highly profitable, can also lead to losses if you don’t know what and where to look for, and, what’s perhaps even more important, to know how to look for the sings of some sudden changes. The volatility is the most talked-about issue regarding crypto, but every investment brings certain risks, and that’s precisely where the money is, as the more risky some investment is, the more profits it can bring. On the other hand, there are ways to make a careful trade, the one for the long run, which, understandably, brings fewer profits immediately, but in a year or so, it can be one of the best things you have ever done. Now, volatility is just one issue that troubles crypto trades, so let’s further discuss this topic and present other issues.
Fluctuation
Let’s start where we left off, volatility, and what this basically means is that the price of coins can change in a few minutes. It can lead to earning huge amounts of money for those who are lucky enough but also losing, depending on the moment in which we decide to invest. It is almost impossible to predict when the price will change, and it represents one of the biggest issues, especially for new traders on the market who do not have enough experience. Even the most experienced ones can face some big losses thanks to fluctuation, and we can say that in the crypto world, nothing is certain. The best option is to invest in several coins, as by doing so, you will increase the probability of gaining profits/reducing losses. Of course, this is just one and most often used trading strategy, which is why, once again, doing some research before dipping your toe into the crypto world is a must.
Safety issues
Storing and trading cryptos is done online, and because of that, one of the main concerns of traders is safety. Cryptos are the main target of hackers who try to gain access to other people’s wallets and get their funds in a few seconds. Because of that, it is crucial to find a reliable platform, or we can lose our money even before we are aware of that. It is not easy because there are many frauds, and choosing the trustworthy one can be pretty challenging, but it is something everyone needs to do in order to protect their cryptos. If you are a new trader, it can be helpful to read online reviews and learn from other people’s experiences with a certain platform since people are willing to share them. On the other side, if you do not have enough time for that, or simply do not know where to start the research, but you want to start trading, https://ethereumcode.app/ can be one of the safest choices for that.
Settlement/inheritance problem
Inheritance problem
Since the whole thing is about anonymity, one of the big concerns of crypto owners is about inheritance or what happens to coins in such situations. Now, the system on which BTC and other currencies are based is simple, you create a digital wallet, and only those with passwords have access to the coins. And here comes the problem, as there is no way to claim something you don’t really possess, regardless of whether it should be a part of the inheritance package or not, as if someone has the password, it’s theirs. This one is closely connected to many regulatory problems crypto owners face and is only one small part of it.
Regulations
The main characteristic of cryptocurrencies is decentralization, which means that they are independent of the world’s banks and their regulations. It can be a great thing because they do not depend on the value of any other currency, and their vision is the possibility to use them everywhere in the world, but there are some issues regarding that. Some countries still do not accept cryptos as a valid payment method, and it can cause a lot of problems for new traders without experience. Because of that, it is necessary to learn the laws related to cryptocurrencies before trading to avoid any legal consequences and problems. Furthermore, strict regulations with huge fees and taxes are also nothing new, so make sure to check the law of your country regarding digital assets before taking any action.
Privacy issues
Crypto transactions are anonymous, and everything that other people can see is the address of our wallet and the name we want to be seen. Of course, it does not mean that they cannot be tracked, and authorities can easily track them and find the sender and the receiver in a few minutes. The main problem regarding privacy is that hackers can easily do the same things as authorities and find our personal data and the amount of money we have. The only way to protect personal data is using a reliable trading platform that can guarantee a high level of safety and security because one wrong step can cost us a lot. Besides that, some exchange platforms agreed to meet government terms about crypto ownership, meaning that the government can track every transtaction.
