These Are The Concerns Around Cryptocurrencies That Are Scaring Future Investors
Here are the top 5 reasons why investors who have not yet entered the game stay away from digital currencies.
There are currently more than 1,600 cryptocurrencies in the market according to CoinMarketCap. With so many new currencies, it can be a little intimidating for the average investor to make an intelligent choice. It is normal that we all ask ourselves at some point: “Which ones should I buy? How do I buy them and how do I navigate through crypto exchanges that I don't know how to use?”
This is why you should take a look at the five main concerns about cryptocurrencies that keep a potential investor crypto away.
1. “It's A Bubble”
We've heard that a couple of times. Ask anyone who has invested in the cryptocurrency market if Bitcoin is a bubble and they will probably make fun of you if you have noticed the profits this community has made. But for the general public, the fact that all of this could burst at any moment is a frequent and frustrating fear.
The reason for this fear is because some economists, influential people and billionaires around the world say that Bitcoin is a bubble. Logically this will make you fear before you decide to invest in this space. What you can do in order to change that? Wall it is possible to think of the large number of celebrities who say otherwise and who have already shown the world the benefits they related to virtual currencies and Bitcoin.
2. “It's So Volatile”
We have all heard these comments. High volatility is never a good sign, either with people or when it comes to money.
You must remember that investing in cryptocurrency is not for the faint-hearted. Nor for the bravest of them either. This is why if you decide to enter the market, you must keep the focus and balance of feelings. This is the same kind of advice that has led to the success of hundreds of investors in recent years in businesses at the New York Stock Exchange.
3. “Not Real”
The million dollar question is always: “Why take your hard-earned “real money” and invest it in something totally invisible?”
This isn't like buying diamonds, gold or real estate. It's not even like investing in a company. In fact, there is nothing behind most cryptocurrencies expecting pure speculation. Not having an asset to back up your value simply does not suit many potential investors.
But the answer to this question can be answered with another trick question: Is not fiat money equal to “tangible” value because of the trust people have placed in it?
Scams exist in every market or every type of business in the world. Cryptocurrency is no exception. However, thanks to the benefits of transparency and distribution provided by blockchain technology, new efforts are being made every day and regulatory actions are being implemented that are healing the ecosystem.
Like scams in other businesses, it is imperative that you keep up to date with new methods of scams in the cryptocurrency space. Today, hundreds of guides are issued on how to prevent becoming a victim of digital crimes related to virtual currencies. You can browse through several of them online and learn how to stay safe at all times.
5. Account Security
Getting used to online banking is quite difficult for many and still is for some. It's really no comfortable to hear about all the cybersecurity issues related to digital assets. So you need to ask yourself the question: “Where should I store my private keys once I buy my cryptocurrencies?”
Some will say that exchanges are not secure, others say that online wallets are constantly being phished and compromised. So how are you supposed to store your funds? The most reliable solution in the opinion of the crypto community is in the hardware wallets. These are made for the purpose of keeping your funds out of the reach of online dangers.
But you also need to remember and add to all the issues mentioned before that this is an unregulated industry without consumer protection, with a negative environmental impact and strong associations with criminal activity. But doesn't it strike you that there are more and more investors in the Cryptocurrency Market?
Most governments around the world are still trying to categorize it. Most are planning to make regulations with that. Not to mention what many companies in different industries are already working with digital tokens, it is for this reason that it is possible that widespread adoption will gradually take place all over the world.