Problems Cryptocurrency Investors Face in their day-to-day life.
Since 2008 when an anonymous developer named Satoshi Nakamoto launched the first cryptocurrency bitcoin, its popularity sky-rocketed in an unprecedented way. Bitcoin changed people’s perception of transaction and investment methods, which went hand in hand with the revolution cryptocurrency brought in the financial industry and the modes of payments.
Cryptocurrency can be understood as a digital coin or entity used for transactions and money transfers from one digital address to another. It is a network of binary data that functions as a pathway for data exchange. Visit http://bitcoin-bankbreaker.com/ to know the mechanism of cryptocurrency trading. Cryptocurrency works on decentralized blockchain technology, providing cryptocurrency validation.
Blockchain technology is a continual linkage of blocks based and secured by practical applications of cryptography principles. However, because Cryptocurrencies like bitcoin and Ethereum are very new in the market, a tiny segment of investors is well acquainted with the concept of trading and its compliances. As a result, people often find themselves in a dilemma when buying a particular cryptocurrency and face many problems either while buying or executing an order.
Here are a few Common Problems Cryptocurrency Investors face while trading in Cryptocurrency:
Cryptocurrency Platforms
Numerous cryptocurrency platforms seem to be offering almost similar services with nearly the same amount of charges. It becomes very problematic for investors to trade when their cryptocurrency service providers do not have robust technical support. The transactions in cryptocurrency need to happen in mere seconds; otherwise, the desired price on which trade needs to be booked fluctuates, failing the order booking. It could lead to catastrophic consequences for the investors, disrupting the profit calculation.
Moreover, many cryptocurrency traders face the problem of fund transfers in their accounts because the accounting network of the service providers may not be sound enough to handle a significant number of orders in a short period. Furthermore, most of the time, the desired currency in which an investor wants to invest is not even listed with that specific Cryptocurrency survive.
To avoid such complications of cryptocurrency transactions. An investor must select a cryptocurrency service provider with utmost consideration and research.
An investor must select a platform with a reliable image in the market. Also, the platform must have a solid technical network to handle thousands of orders simultaneously.
Political Interference
Cryptocurrency is a decentralized currency that any government or organization does not regulate. However, because the transactions in Cryptocurrency are intractable, they can be used by criminals and terrorists to execute trades and transact money for illegal purposes from one country to another.
Misuse of Cryptocurrency in terrorism and illegal transactions, many countries worldwide have either implied a ban on or keep lifting and applying restrictions and ban on it. This consistent political interference enforces cryptocurrency investors to face dire consequences.
Volatility
It is undeniable that Cryptocurrency is a highly volatile investment platform, and the price of crypto can rise or fall drastically in a brief period. The possibilities of gigantic fluctuations in the stock price of a cryptocurrency create a sense of reluctance in traders’ minds towards their investment.
The curse of Maximum security
Cryptocurrency is one of the safest platforms for investments and trading. It is even believed that a Bitcoin transaction from one platform to another is impossible to track and hack with present-day technology. However, suppose an investor forgets his Identification and security code. In that case, it becomes very tedious or impossible for him to retrieve his Funds from his account, and they are locked and lost forever.
Lack of Fundamental foundation
Cryptocurrency is a virtual platform, and the price fluctuation is based on the notion of people and the recent trends in the market. Therefore, there is no fundamental value of a particular cryptocurrency, which creates difficulty for the investors to judge the fundamental value. Otherwise, the Cryptocurrency’s price can even become zero due to the lack of a fundamental foundation, forcing an investor to lose all the funds he invested in a digital coin.
Money will be earned and lost, but the future of Cryptocurrency has been bright and strong for at least a few decades. People will keep on investing in Cryptocurrency, and the cryptocurrency network is getting stronger, reducing the margin of error day by day.