Alternative View: Drawbacks of Cryptocurrency You Should Keep in Mind

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Written By Paul

 

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You’ve probably been on the internet long enough to know that people are praising it so much for the pros and returns that they’re receiving because of all of the day trading. It might be an excellent hobby to do on the side, or you might even be day trading as your primary source of income. 

For people about to start trading in cryptocurrency, you must know what you are getting into. Having a solid background in cryptocurrency can always give you the upper hand whenever you want to start investing now or later in the future.

Added to that, it would help if you never forgot that since cryptocurrencies have pros, they are not without cons. So here’s a list to name a few significant ones that you should keep in mind when you enter the world of cryptocurrency. 

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The Scalability of Cryptocurrencies

One of the biggest concerns people have with cryptocurrencies is their scalability and the problems that trail along with the scalability. Although the number of people adopting and taking part in cryptocurrencies has increased, it’s still safe to say that all of those are overshadowed by the terrifying currency giants VISA and Mastercard.

There Might Be Cybersecurity Issues

You can see it in the subhead, cybersecurity has always been a significant concern to many people, especially when money’s the main topic. However, someone who can bypass securities and hack into people’s accounts has considerably gone up in this day and age.

There is already evidence of this occurring where major investors are getting breached and losing hundreds of thousands to millions of money! 

Luckily, since technology is continuously being improved, extra steps are taken into consideration to improve the overall security of your investments. Also, other options, such as cold wallets, could provide extra security to your cryptocurrency investments.

In addition, platforms, Immediate Edge for example, have already discovered the tools needed so that traders can be safe and secure when investing in the crypto market. If you aren’t already familiar with the platform you can register there with just a few clicks and begin your crypto journey. Before you commit your capital to another exchange, you can check out these procedures so you don’t get burnt.

Loss of Data May Lead to Possible Loss of Money

This is in ties with the security cybersecurity issues that many cryptocurrencies have. Although there are ways you can prevent it such as building up defenses up like a virtually untraceable source code, or a strong defense for hackers, or even fool-proof authentication protocols, a loss of “the key” to your vaults will lead you to lose everything inside of it too! So along with the content, your vault will be put to the side not to be used again. 

It’s important that you always take extra precautions when it comes to protecting your crypto investments. Security should always be your top priority since it involves not only your money but also your time and effort. Keep all your important information and transactions safe, and this might become the least of your problems. 

The Volatility of the Price and Lack of Consistent Value

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What do we mean by the volatility of price? With the latter half of this drawback, the real-world price of cryptocurrencies is often temporary, very fluid, and very inherent. The value of the cryptocurrencies could be worth more than $9 at the start of the week and drop down to below $1 later, in the same week! One little ick could drop the value of the coins, although you may be adopting more types of coins to avoid this volatility. 

There Are Regulation Issues

Unless all of the previous drawbacks mentioned before this one have been sorted and aren’t an issue to be dealt with, the government won’t adopt this technology. Therefore, always posing a risk to potential and current investors. Furthermore, even when this technology has been taken in, the change of protocols and the time to adjust to and improve the tech will take up a lot of time and may interrupt people’s everyday routine.

Conclusion

Although there may be loads of barriers and safety precautions put in place when it comes to the technology of cryptocurrencies – which may shoo away the ignorant and naive minds, this technology will still be around.

This is because the advantages that cryptocurrency gives to its consumers outweigh the disadvantages – especially with the currency that people deal with today. So if you are ready to invest and trade in the crypto market, there are tons of ideal crypto exchange that can help you in your journey.


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