Cryptocurrency, a term used to describe digital money that is transferred electronically, doesn’t seem like the most obvious path these days. You might want to think twice before jumping in head first with Bitcoin and other crypto currencies. Eplat crypto is one of the most popular crypto currencies. Crypto currencies are digital, encrypted currencies that are not controlled by any country or banking institution. You may have heard about crypto currencies in the news for being used in drug trafficking and money laundering.
There are several reasons why you wouldn’t want to invest in it. The value of this currency fluctuates as wildly as its emotion does. You won’t get rich, but neither will you lose your shirt. You might want to consider it as a means of transferring money into the digital world, but investing in it is not recommended at all. Here are some of the reasons why you should stay away from crypto currency.
1) Risks Of Being Hacked
The most obvious risk is that an online exchange will get hacked. The internet is a deeply treacherous place. No matter how good your encryption system is, if someone out there wants to hack into your site, they’re going to do it.
And at this time, a great many exchanges are not trusted enough to be seen as safe. There have been too many instances where people have transferred money in and never received the goods that they wanted. The sites have been shut down and no one has heard from them again since then either.
2) Crime, Drugs and Terror
The other reason why you shouldn’t invest in crypto currency is because of the risks associated with them. On some servers, people buy drugs or they buy other illegal substances. You might want to think that you are getting the good stuff here. A lot of it is a scam and another way for criminals to launder money.
And terrorist groups use crypto currencies to send money around the world from places like Russia and China where banks have tight control over all financial transactions. The entire drug industry, for instance, has been known to use crypto currencies for money exchanges. These are some of the reasons why you should stay away from it and steer clear of crypto currency.
3) Risk Of It Being Blacklisted
In the past, governments have blacklisted financial organizations that were tied to terrorist groups or that were believed to be tied in some way with organized crime. If a crypto currency is linked in any way to these types of organizations or with any criminal activities, then chances are that a government will do whatever it can to cut off all money transfers between exchanges using blacklisted currencies and banks. This means that your money will be frozen on one side and you won’t get what you transfer. This is one of the risks involved with crypto currency.
4) Lack Of Legalization
Another reason why you shouldn’t invest in crypto currencies is that they aren’t legal everywhere. If the government where you live decides to outlaw crypto currencies and they freeze all money transfers, what are you going to do? Are you going to just accept that your investments have suddenly vanished into thin air? You’re out of luck if this happens and there is no way around it. The only way around it is to make sure that you don’t get tied up with this form of currency, but it might be too late for most people by now. The legal concerns are too many to list here.
5) No Government Regulatory Oversight
If a government decides to outlaw you and all of your activities, then there would be no regulatory oversight that could happen over you. The government could start any illegal activity it wants and these would be the consequences for people who get caught. They can do whatever they want, like froze bank accounts or seize properties from a particular person or group as punishment for illegal adoption of a crypto currency. All in all, this is one of the worst reasons why you shouldn’t invest in crypto currencies. The fact that governments haven’t outlawed them already doesn’t mean that they won’t in the future either.
Bitcoin is the most popular of these transactions. Currencies like this are volatile and there is no telling where they will go at any given time. In a lot of ways, it’s just as bad as stocks. You can see a classic example of this in the graph below. You’ll notice that you can buy a lot more Bitcoin with the same amount of money invested when the currency is low than when it is high.