Crypto trading has gained a lot of attention since the bull run of the crypto market that was seen in 2017. Bitcoin almost touched the $20,000 mark back in December of 2017 and a lot of ‘investor eyes’ have been focused on this asset in order to gain a quick world since. But crypto trading is a risky business. The market has been in a bear run for over a year now. Here are some of the reasons why you shouldn’t step into it.
Volatility is one of the major issues associated with cryptocurrencies right now. One day the market is seen shooting up and the very next day, it is down in the dirt. Investors lose a large amount of money in a matter of minutes. One has to tread very carefully in this volatile arena of crypto trading.
Another one of the biggest issues associated with this world of crypto trading is manipulation. Since the market cap is very small as compared to various institutions and banks, the prices of the crypto assets are highly prone to manipulation by big whales present in this game. ‘Pump and dump’ strategy is often used for gaining personal gains. Whales move the market in their favors. This issue is also one of the reasons why an exchange-traded fund (ETF) has not been approved by the regulatory body in charge, the United States Securities and Exchange Commission (SEC).
Scams are rife in crypto trading as well. Since there aren’t many laws and regulations present to curb out illegal activities and provide a security fabric to the investor community, negative elements have found their ways to seep into this world. Many investors have lost a large amount of money owing to the scams prevalent in this world.
So, crypto trading might just not be the best option for you if you are looking for minimal risk. and especially if you are new to this space. The risk associated with the crypto world is also too high. The volatility of prices is a very big issue and the magnitudes of the price drops and jumps are very high. There just are too many factors to accommodate. If you are looking for raising a quick buck, crypto trading might just result in the exact opposite. It’s not 2017 anymore. It’s better if one stays away.