CRYPTOCURRENCIES ARE DANGEROUS

What are Crypto currencies? Crypto currencies are a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. This type of currency can be dangerous in many ways.

     One main way is the instability of the Crypto currencies. The volatility of the Cryptos can exponentially reduce your investments. There is a high chance of the user losing all of his money if he does not know what he is doing. We can see that how it took years for early investors in Bitcoin to gain huge rewards, which increased from a few dollars to where it is now.

     Another problem is the publicity. There is a lot of propaganda with Cryptos. This is because most people do not know what they are investing in, and they would rather listen to the rest of the crowd. Be informed, that using all of your hard earned life savings, or taking a loan, can be risky especially if you do not have the rudimentary, or the right knowledge on the technology and the coins.

     One of the most popular ways to use Cryptos, is to trade and exchange where the two people meet, on the online platform and trade or exchange their coins. This creates a much higher likeliness for fraud and security problems. Recently, people have been warned and informed about some exchanges being fake. It is easy for unsuspecting investors to open an account at a fraudulent exchange and submit their money, but it is easier for criminals to steal the money from these exchanges and the investor never receives his money. This has now become a common problem with majority of Crypto Currency users.

     Crypto Currencies are very easy to lose. When you are buying Crypto currency, it might be safer to place it in your smartphone’s Crypto Currency wallet, rather than storing it in a nearby exchange. Exchanges are easier to access, therefore more likely to be hacked and stolen. Research has shown that last year, billions worth of Bitcoins were hacked from the wallets of a public exchange.

     There are endless reasons why Crypto Currencies are dangerous, but the problems mentioned in this article are the major problems occurred due to Crypto Currency. These are all the more reasons why I believe that Crypto Currency is dangerous.