Cryptocurrencies became appearing in 2010, and soon, they started to become very popular. These digital currencies provided a better option for business people all over the world. Because it had many benefits compared to that of banks and financial institutes, it offered a comprehensive option to the people to make transactions easily. The whole network is integrated by advanced technology. The use of blockchain technology makes it highly secure for the users.
Furthermore, making transactions is also very fast and convenient as compared to banks and financial institutes. In other words, the whole concept of digital currency is to eliminate centralization. Because they work on a de-centralized model, cryptocurrencies became the talk of the town in less time.
Apart from the fact that it provided huge options to people worldwide to make easy, fast, and secure transactions, there is a lot more to cryptocurrencies that attracted the world. For one, the currency is continuously booming. As the years passed by, different cryptocurrencies were created. However, the most famous and probably the first one is Bitcoin.
Today cryptocurrencies are not just a matter of interest for business people but also for traders and investors. The reason people consider it an investment option is the continually increasing price of these currencies. Because there is a constant increase in the rates, these currencies offer a perfect option for investment and trading. visit globenewswire.com for more information on cryptocurrencies.
Now many have tried their luck by trading cryptocurrencies, but one thing is for sure, it is not for faint-hearted people. No matter how exciting and alluring the cryptocurrencies seem from the outside, one thing is clear. There is a lot more to it that makes it not everyone’s cup of tea. So, here are a few things that cryptocurrency traders hate:
Volatility in price
First of all, the reason many new traders are attracted to increase in prices. It is the main attraction and motivation for them to trade anything. However, when it comes to cryptocurrencies, there is a little too much volatility. In fact, the price of a cryptocurrency can change, i.e., either decrease or increase on a weekly basis, let alone monthly.
So, when the volatility in price is very high, it increases the uncertainty and risk for the traders. Although every trader has to take a little risk, when you talk about digital currencies, the graph can get insane. Not every trader can cope up with this level of high volatility in price. The right move can make you rich, but a poor move will leave you repenting for a long time. Thus, it is the first thing traders hate about cryptocurrencies.
Now any new trader will notice that the cryptocurrencies follow the upward trend, i.e., continuous increase. However, you won’t know the depth of the ocean unless you dive into it. From the outside, the trend might seem increasing, but it is not always like this. In fact, just like the fluctuation of price, these high trends don’t last long as well. If you trade cryptocurrency during its trending period, you will make a lot of profit without a doubt.
However, as the trend starts to decrease, you will start losing money and profit. At that time, the only thing you can do is sit with your cryptocurrency and wait until the next rise in trend. So, you can’t trade blindly. You have to invest your time and make sure you follow the trends keenly. Such a level of commitment and constant monitoring is annoying for many traders. Thus, making it a thing to hate about digital currency.
Conflict with financial institutes
We all know that cryptocurrency is a de-centralized system. Many people love this thing about digital currencies. And why not? It has many benefits. You don’t have to engage yourself in piles of paperwork. You don’t have to wait for days to get a transaction. And above all, with cryptocurrencies, you are in control. With a single click, you can send or receive the payment within 2-3 minutes. No matter in which part of the world you are, you work without the interference of the banks and other financial institutes.
These are definitely plus points for the users of digital currencies. Still, things can get a bit complicated for traders without the involvement of the government, banks, and other financial institutes. Because the blockchain technology of cryptocurrency completely bypasses traditional banking, the traders’ income, revenues, and fees are at stake.
No matter how advanced and secure the blockchain technology is, the system of cryptocurrencies is always subjected to cybercrimes. Even the slightest of a loophole can scum the transactions and wallets to the hackers. So, there is always a prevailing danger of cybersecurity. Because traders are deeply involved in cryptocurrencies, they are constantly under the radar of these hackers.
Because cryptocurrencies are a de-centralized system, they are not under the umbrella of any government, bank, or other financial institutes. In other words, we can say that there are no regulatory bodies and no one to whom you can contact, ask questions, and talk about any issue.
There is no physical presence of any cryptocurrency in any way. In fact, you might find people who have experience in trading it or have detailed knowledge about it, but it is still a free currency. No one regulates it. In fact, the person who invented cryptocurrency is also anonymous. So, if a trader is facing an issue, he has no one to talk to or contact. Pretty frustrating for traders, isn’t it?
Cryptocurrencies might have hype, and many people might be using them, but all that glitters is not gold. As you plan to become a cryptocurrency trader, you might need to remember this phrase more often. There are many things that no one tells us. We get to learn these from experience. The same goes for trading cryptocurrency!