The risk of trading cryptocurrency

Cryptocurrencies have become more widespread in public consciousness in recent years. By now, most people have probably heard of the biggest cryptocurrency, Bitcoin, even if they might not be able to explain exactly how it works. Cryptocurrency is very different from other financial assets. For one, there was never a time in history where “currencies” could be non-local with no way of physically exchanging them. This makes cryptocurrency one of the only assets that are totally dependent on technology. This comes with its own set of risks. Royalty Free Photo Cryptocurrency markets also don’t behave like most other markets, and while few will admit it, a lot of it is guesswork at the moment in terms of price movements. Into this scenario come people with absolutely no prior experience in trading, and end up making costly mistakes as a result. Here are some of the risks of cryptocurrency trading that you need to beware of if you’re considering stepping into this field. Losing Your Coins This is one of the most terrifying risks of trading cryptocurrency, but one that happens much more often than it should. Basically, some people will make the mistake of keeping their coins stored on an exchange. There’s absolutely no need to do that with crypto wallets, but some people also make the mistake of trusting shady exchanges. The truth is that the crypto space needs more regulation. As a result, virtually anybody can set up an exchange. And these can fail or be hacked, believe it or not. So, don’t… Read More