Cryptocurrencies have taken the world by storm and it continues to redefine the trends almost on a daily basis. Millions of people, traders, and investors keep a vigilant track of this volatile industry which comes with unfathomable opportunities but is also filled with devastating losses. For someone as big, influential, and prominent as Elon Musk wouldn’t have much problem if the prices of Bitcoin crash significantly on an unfortunate day. However, the same crash will wreak havoc in the lives of mediocre investors who view crypto bot Cryptocurrencies as their doorway to becoming millionaires. Hence, the chance of risk, volatility, and disappointment is an integral part of the crypto industry that many cannot fathom and end up either giving up completely or waiting for a better time to invest.
What if, you have it all and then lose it all?
What if cryptocurrencies are banned completely in your country out of surprise from the government? What will be your next move? Who would rely on? What are your alternatives? Well, these are some of the predominant questions that you should ask yourself. If cryptocurrency brings fortune overnight, then it is also bound to bring misfortune on the same night. That is why the common saying of “Crypto is not for faint-hearted” is heavily trending across all social media platforms.
Do you trust your cryptocurrency too much?
Many traders and people across the world have begun to use cryptocurrency as their main property which can prove to be the most destructive decision that they could have ever made. Keeping your property entirely safe from miscreants is somewhat a challenging task. People in real estate protect their property through prosecution notice or other physical means to prevent evildoers from encroaching upon their territory. This feature is somewhat limited in the cryptocurrency domain and this is where the real problem begins.
Trusting an entirely digitized medium to keep your most valuable assets safe is not a very good option for people who are a bit conventional. The chances of a cyberattack and malware attacks are higher in such cases and no one will be able to stop it once it strikes, or at least a significant damage would have already been done.
Are you putting your savings to the right use?
You might become elated and enthusiastic about buying a bitcoin but what if its prices are not as favorable as you had anticipated? What if it witnesses a significant dip right after the day you bought it? Would you be able to fathom that loss? You might have spent a fortune in finally gaining access to a bitcoin but all your investment might be drained in just a flash of seconds and there will not be much left to recover from that debilitating loss. You might have kept your bitcoin safe in your wallet but it won’t be any productive if the prices don’t go up in near future.
The prices fluctuate erratically which is why an element of predictability is completely attached to the characteristics of all the cryptocurrencies available today. Hence, it is advisable to not invest a large chunk of your money or savings if you can’t handle the loss that you might have to go through in the future. But, success is there as well which is yet another reason that people can’t detach themselves from this industry.
Who would you go to in times of need?
The idea of cryptocurrency is quite magnetic as it does not have any authority assigned over it to monitor the transactions. The peer-to-peer transactions eliminate the concept of financial intermediaries from its existence and the governance system is also limited in this digital era of cryptocurrencies. People can execute the transactions sitting in any part of the world and there is no limit in terms of the amount of transaction either. It gives great leeway to the people who don’t want their transactions to be monitored. However, if you somehow lose your digital currency or bitcoin, then you have no one or nowhere to go. You are all alone to deal with the loss as there is no authority to resolve your issue which will eventually go unaddressed.