Cryptocurrency is the hottest topic on the planet earth these days, as it is believed to change the way the world sees the money. Cryptocurrency is a virtual device to store a monetary value.
The best feature of a cryptocurrency is it is not required to be converted into any national currency for any trade of goods and services 1 btc to usd, it is globally accepted. Here are some risk factors to be considered without investing:
- Volatile nature of market
The value of bitcoins is dynamic, as it depends on the market index, whether it’s going up or down. It does not guarantee any fixed amount to be returned on fulfillment of its purpose, payback value will be decided according to its market share value 1 btc to usd.
For buyers and sellers to trade bitcoins or any other cryptocurrency needs a platform, an exchange platform, as its rising popularity is an open arms opportunity for fraud to create a fake online exchange, this ignorance of security is a huge risk for traders.
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- Lack of Governing body
Presently, there is no governing or regulating body for bitcoins or any other cryptocurrencies; it is running as an industry itself. No regulating body makes it a very risky game for investors as manipulation by private firms or powerful individuals is possible, like Elon Musk.
- Limited Exposure
Many countries do not allow cryptocurrencies, very few companies have acknowledged and accepted cryptocurrency as a substitute for real currencies which makes it a very vulnerable situation for its holders.
Yes, it is one of the major drawbacks of cryptocurrency, it is hack-able. Bitcoins are just a set of numbers hidden inside, only known to its manufacturers and its holders, yet again hackers find it quite simple to crack this algorithm.