What do you risk, investing in the crypto currency?
Crypto-currencies, which have turned traditional ideas about financial markets, are an investment instrument attractive for many. To earn on them, and not bad, you can with a small starting capital. Crypto-currencies that appeared recently have a minimal cost, and, looking at bitcoin, it can be argued that they have every chance of explosive growth. At the same time, investing in tokens involves a variety of risks, many of which are not common to other financial markets. What do you risk, investing in the crypto currency? A list of the main threats is in this article.
Volatility of financial instruments and market instability
Pay attention to two factors:
- Crypto currency is decentralized. There are no regulatory bodies that could maintain the stability of courses;
- the market of crypto currency is experiencing a stage of its formation, therefore the probability of "storms", accompanied by sharp fluctuations of rates, is great.
- Increased volatility and instability, on the one hand, can allow a quick and a lot to earn. On the other hand, they can overnight deprive an investor who invested in crypto-currencies of all or almost all of the funds.
Malware and hacker attacks
Vulnerability of the market for cyber-frauds and the great interest of the latter to this market have long become a common place. An investor who buys tokens risks becoming a victim of a specialized computer virus, an extortion program or a sophisticated hacker attack - and, as in the example above, lose money in a matter of minutes.
Lack of security and guarantees
- Crypto-currency, unlike ordinary money, is not secured by anything;
- There are no guarantees when dealing with transactions with tokens on specialized exchanges.
- If the exchange rate is broken, illegal encroachments or technical problems, you can not claim damages from the exchange: it only provides access to crypto-currencies, but does not bear any responsibility for them.
Lack of regulatory framework
In our and many other countries, the turnover of crypto currency is still not clearly regulated at the legislative level. Lack of rules of the game is a serious risk. It can not be ruled out that these rules will appear at any time - for example, in the form of a complete ban on crypto-currencies or significant restrictions on their turnover. With this development of events, the investor who invested in the tokens can simply remain at the broken trough.
The key feature of bitcoin and other crypto currency is the impossibility of canceling the committed transaction. Meanwhile, the investor is a living person, he can make mistakes when entering the code or the address of the sending. A mistake even in one sign can lead to the fact that money will disappear in an unknown direction, and it will be impossible to correct it.
So, now you are aware of the main risks that accompany investment in crypto-currencies. Weigh everything "for" and "against", be vigilant and invest competently!
TTFX marketing department