The popularity rate of cryptocurrencies have soared to great heights thanks to Bitcoin. The Bitcoin success looking
at its early days have created a massive spinoff of several cryptocurrencies vying for their share of the market.
Nothing wrong with that. However, digital currencies which seek to decentralize the way financial transactions are
conducted by fostering borderless transactions, come with enormous challenges.
Kindly refer to our guide on cryptocurrency here for detailed
explanation if you are new. This is very much recommended.
Hard Truth No. 1
Cryptocurrencies Have Extreme Volatility
Cryptocurrency markets are notoriously volatile, with prices fluctuating wildly in short periods. For instance, the price of a cryptocurrency can rise to about 200%-300% its original price or fall to about 50%-60% its original price in just a matter of days, weeks or months. The advice here is that, if you invest in cryptocurrency, be prepared for significant ups and downs. Only invest money you can afford to lose, and avoid relying on crypto as your sole investment strategy. Such volatility can wipe out all your investments in a short period, so beware.Related Posts
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Hard Truth No. 2
So Much Risk Due to Regulatory Uncertainty
Governments around the world are still trying to figure out how to regulate cryptocurrencies. In countries like China, there have been outright bans on cryptocurrency trading, while in other regions, there are discussions around heavy taxation. These uncertainties can lead to sudden crashes in value, as seen recently with Solana when when the US refused to grant it a spot ETF, causing a massive drop in its price. The advice here is that always stay updated on government regulations and be prepared for sudden changes. Understanding local laws is crucial to avoid potential losses or legal issues.Hard Truth No. 3
Security Risks Are Real
Cryptocurrency wallets and exchanges are prime targets for hackers. Major platforms like Rohin Network, Poly Network, FTX, Binance BNB Bridge and Coincheck have suffered hacks, leading to billions of dollars in stolen funds. It doesn't end with only companies, even individual investors have also been scammed or hacked outrightly. The advice here is that make security your top priority when investing in cryptocurrency. Use hardware wallets, enable two-factor authentication, and never share private keys or sensitive information.NOTABLE MENTIONS
Cryptocurrencies Are Here To Stay
This one is for all the naysayers and prophets of crypto doom who have and continue to predict the death of cryptocurrency. Again this goes to all jurisdictions that are heavily scheming against digital coins, to end all that and rather focus on working together to give cryptocurrency the legislation it deserves and ultimately the security needed to formalise it as an alternative to fiat currencies.Popular Cryptocurrency Coins
NB: Coin list updated regularly.
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