Cryptocurrency is one of the most fascinating and popular cryptocurrencies in the world. With bitcoin, litecoin, ethereum, and more all having a market cap over $10 billion each at their peak, it is hard to deny how big the synthetic currency has grown. The idea that technology can be accessible to anyone is what has drawn so many people into the crypto culture.
The downside of one-click-crypto trading is that we can quickly become desensitized to volatility and disaster scenarios. This means that investors often grow complacent when things are going well for them and then find themselves in trouble when their balance sheet changes drastically because of an unforeseen event like a price decrease or regulatory action. Hello landing reviews reddit is a lot like investing in cryptocurrency: it can be extremely lucrative, but it also has a high level of volatility similar to what one would see in traditional stocks.
1. Volatility Causes Career Development Problems.
If the same stock price drops significantly in value within a short period of time, it is likely that the price will rise again soon after. The price of this stock can be extremely volatile, which means that traders will be notified in real-time if they need to go sell some shares at a lower price than they were paying for them. The same principles apply to crypto: you are likely to hear in real-time when the price has dropped in value and the number of coins you own is worth less than it was before.
2. High Trading Fees Are Costing You Money .
It is a common misconception that crypto exchanges never charge trading fees. This is not true at all: crypto exchanges often charge the same high fees per trade as traditional stock exchanges do. This means you might have to pay $10 or more in fees just to make a single transaction with your funds. Some traders will be able to earn this money back extremely quickly, but others may see this as a cost that they do not want to bear .
For instance, if you want to move $100 from your bank account into your crypto portfolio and the exchange has a 1% transaction fee, you will end up paying $1 for each trade. If you are making a single trade per day, then this will add up to $365 in fees over the course of a year.
3. Censorship Is A Problem For Crypto Traders .
Some people use cryptocurrency as an alternative to fiat currency because they do not trust the government or central bank. If you live in a place like North Korea or Venezuela, it is possible that you do not have the same freedom to trade your currency as other countries do. Just because you live in a country where the government does not interfere with cryptocurrency trades does not mean that your trading is free from censorship.
As of right now, centralized exchanges control the trading of crypto more so than the central bank does a fiat currency. This means that people using an exchange can be banned or limited if they are suspected of committing fraud or violating the terms and conditions set out in a brokers black list policy. In other words: exchanges can shut down any account they see fit without warning .
4. The Blockchain Has a Memory .
If you are a crypto trader, then you probably know the importance of having an online digital wallet to store your coins. Even though you may know that your digital wallet can be hacked or even lost or stolen, you will likely still keep it because of the potential benefits of having one. The main benefit is that no one can take your coins from your wallet without your permission. If someone wants to steal all the money in your account, then they will have to crack through all the security measures you have in place.
The same thing goes for a crypto exchange. Most crypto traders understand that when a crypto exchange is hacked, your funds are at risk of being stolen as well. However, this risk can be significantly reduced if you are using a hardware wallet .
5. Cryptocurrency Laws Can Limit Your Trading .
It is important to note that the laws that protect you in traditional stock trading may not apply to crypto trading. It is possible you will see price increases on a stock just as quickly as you would see price decreases. Traders in the United States, for example, may know when an earnings report has caused a 10% increase or decrease in share prices. If this same type of news comes out about an exchange offering crypto trading, then it may be possible that you can get your balance updated before the price goes through another big change .