Is the cryptocurrencies trading safe?
Bitcoin is a digital currency that breaks popularity records every month. More and more people are thinking about investing in the title currency. The exchange rates are going crazy, and that certainly does not help easy profit. Another element that contributes significantly to losses is the vague tax law, which rejects the largest investors from the world of finance. On the other hand, however, bitcoin investment can bring big profits in a flash. As a result of this state of affairs, a fundamental question arises – is cryptocurrency trading safe?
Different shades of risk
Investment in the title form of the currency carries a lot of risk. This is because a crypto currency is a young technological product and an even younger investment instrument. The risk associated with such investments can be divided into several types – political, technological and social risk. What are the investors most afraid of? First of all, embezzlement and stockbreaking.
A large percentage of people are also afraid of problems resulting from the recognition of BTC as a means of payment. In the last year, the world circulated information about network capacity problems – this is another big danger, which may expose investors to huge losses. Marcin Borek, an expert at bankier.pl, writes in an interesting way about the risk connected with investing in BTC:
Finally, crypto-currency investments may become a victim of our own success, we may (as it often happened) have to deal with another crypto-currency bubble, which may end in another spectacular bessie on this market. Another matter is that without risk there are no profits, and well known and priced risk can be the basis for really high profits.
There are also extreme opinions of the biggest investors from the world of finance. The CEO of the Bank called bitcoin directly – a bubble, comparing the contemporary trend to a bubble of tulips – one of the biggest scams in the history of economics. In turn, Deutsche Bank’s chief strategist stated that investing funds in the virtual currency simply does not pay off from the economic point of view, and that the factors responsible for this are huge fluctuations in the exchange rate and minor regulations.
As you can see, the risk is considerable – but on many examples it can be clearly stated that investing in bitcoin will allow you to earn large amounts of money. The question is, is this risky game worth the candle? We have to answer them ourselves.
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