The risks of using crypto currency

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Why investing in digital currencies like bitcoin is so dangerous? Do you think this is a completely secure and reliable payment method? Price insecurity is just one of many risks in this disastrous market. This is the slightest trouble that can disturb you.

If you are even a little tempted to invest in digital currency, such as bitcoin, then you have accurately viewed or listened to many lectures by influential people on this occasion. Those of them  who say the truth will certainly not praise the crypto currency. They know for sure that investing in such resources almost always has a bad end.

Now everybody has heard about the hype around crypto currency – this is a form of encrypted digital money, which medium and large (and small also) investors can trade as stocks. The madness was caused by the bitcoin, the oldest and most famous creep foreign currency, which in 2017 increased by more than 1900 percent to about $ 20,000 before dropping to $ 14,000 this month. Feel how closely crypto currency stay  with the word “instability”? And do you need instability?

However, people unceasingly begin to use this resource. But how safe is bitcoin?

There are now hundreds of other such currencies that can be traded, and new ones are regularly created. For example, Eastman Kodak, has just announced Kodakcoin, a crypto-currency for photographers used to manage rights and payrolls. Shares of the company grew on news by 245%.

But do not fool yourself.

“People are desperate for everything that can bring instant wealth to them, but  crypto currency is a very risky investment, because this technology is something new and not confirmed and not tested to the end,” –  the experts from the leading research groups say, who are engaged in the study of cryptography and all its “pitfalls”.

“You do not have to invest money that you do not understand and you do not have to invest money that you can not afford to lose,” they say. And they definitely are right.

If this is still not enough to keep you from the thoughtless use of crypto currencies, we have one more argument.

Transactions with crypto currency are final. There is no guarantee against fraud by the financial institution, and there is no return path to the transaction, if there is a problem. And while the technology of block chains will show you which computer has hit your money, it’s almost impossible to identify or persecute the criminals who rob you.

Do not be fooled and do not go for great wealth – it’s possible to cripple and become an effective way to get rich, but the way does not justify the goal in this case.

At this stage of the development of the virtual currency, it is still too shaky and unstable and not protected to consider it as a reliable tool for business.