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Weaknesses of Crypto Trading


Suba
 Suba
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Crypto trading promises big profits, but behind it is also full of risks so novice traders should not only look at the benefits, thus ignoring the weaknesses and risks of crypto trading to watch out for. Here are some crypto trading weaknesses that traders must learn and pay attention to:
1. Very High Risk
The main nature of crypto is "High risk, High return, very fast price increases and decreases, so traders must prepare themselves with strategy and analysis, because we cannot trade and monitor crypto prices all day long.
2. Traded Freely
The blockchain system will verify transactions instantly quickly and without being able to be repeated or repaired, so we must be careful when sending crypto, pay attention to the crypto address and make sure it is correct.
3. Cryptocurrency Has No Fundamentals
Although cryptocurrencies are often called money, cryptocurrencies do not have fundamentals and are not affected by a country's economic conditions, interest rates and macroeconomics, because crypto is only influenced by supply and demand factors between traders.
4. No Valuation
Although currently crypto is widely used as a medium of exchange, for example buying a Tesla electric car, etc., because the benchmark selling price is USD, not crypto so it is very difficult to predict and analyze the valuation or fair value of crypto.
5. Prone to Fraud And Hacking
In general, in third countries not everyone understands cryptocurrency, so it is often used by fraudsters and hackers.
In conclusion, even though crypto trading has the potential to earn big profits, make sure traders understand the risks, so prepare mentally and strategically before trading crypto.


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cmoneyspinner
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3. Cryptocurrency Has No Fundamentals ... Some might consider that a strength, not a weakness.  I rather like the idea that it's not impacted by a country's economic conditions.  In fact, it was because of a country's bad economic conditions that many people turned to cryptocurrency and it helped them financially.

* Earn interest on your crypto. Open BIA account OR Earn interest on minimum balance of 35K. *


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Tanya
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I agree with most of the points and I would like to add my opinion on #4. Bitcoin is valued at 57 thousand USD. Bitcoin will have valued only in relation to fiat currency. Bitcoin itself has no value. Since you cannot reverse the transaction, there is a danger associated with doing crypto currency transaction. 


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