is cryptocurrency safe to use?Things you need to know about crypto

 

Are you thinking about investment in cryptocurrency?

is it safe or not?

I am going to give answers to all your questions

As You're aware of the volatility in this digital currency if you've Are you thinkingbeen following cryptocurrency markets. The massive swings Ripple, Bitcoin, and others have seen over the last few months are well-known. The big crashes and jumps have been the most prominent cryptocurrency news.

As more investors look for lucrative opportunities in virtual coin trading, cryptocurrency is growing in many countries. For example, Indian cryptocurrency exchanges confirmed that they are increasing the number of users on their platform at an even faster rate in 2021.

The rapid growth in customer base has led cryptocurrency exchanges to believe that the emerging asset will continue to attract investors from different countries. 

But, cryptocurrency investments are only a fraction of traditional investment-class assets like equities.

This trend suggests that although younger Indian investors place more emphasis on crypto assets than traditional options, many people remain hesitant about investing in cryptocurrency.

is cryptocurrency safe to use?Things you need to know about crypto

CRYPTOCURRENCY HAS ANOTHER TREND THAT HAS NOT BEEN GIVEN AS MUCH ATTENTION: THE SECURITY BREACHES.

Hacks becoming commonplace 

There have been many hacks in the cryptocurrency market, including the Bitfinex hack (DAO hack) and the Mt. Gox hack. Coincheck, a Japanese cryptocurrency trading platform, claimed that hackers stole 500,000,000 tokens of NEM in January. The stolen NEM had a value of around $400 million. As cryptocurrency is gaining more attention, so does the likelihood of hackers stealing more tokens of NEM. It begs the following question: Is cryptocurrency safe? What are the two elements to this question? There are two components to this question. First, the actual cryptocurrency itself. Are these digital currencies secure? Are hackers able to stop their protocol? The second part of the equation is about cryptocurrency exchanges. Up to now, powerful hacks have occurred at the exchange level.

Are Exchanges the problem?

Robert Schwentker, a Cryptocurrency expert and co-founder and president of Blockchain University, stated that Bitfinex's Hong Kong exchange hack resulted in 120,000 bitcoins being stolen. This was not a hack.Bitcoin protocol itself." Scwentker recently spoke to the ISMG network about the safety and security of cryptocurrency and its exchanges. He also noted that Bitfinex's hack was the Mt. Gox hack, in which business was hacked. Some security protocols and practices may not have been observed, so it is possible that some protocols weren't used. As a result, there has been a loss of money.

IS IT SAFE TO INVEST IN CRYPTOCURRENCY?

If you are looking at Bitcoin, Ethereum (Ether), or other cryptocurrencies as an investment, the risks involved are not different from traditional assets. This is because there is more volatility.

Analysts state that all cryptocurrencies are risky assets. Wild price swings are common in the virtual coins trading space. 

Investors should understand that the crypto market is fraught with high risk and high rewards. Therefore, you must be willing to take on high-risk trading to reap the rewards of crypto trading.

Investors should remember, Yet, that cryptocurrency is far more robust than it seems.

Nischal Shirky, the CEO of WazirX, a popular cryptocurrency exchange, has pointed out that the asset has weathered two major global recessions and has been around for more than ten years.

Is it time for regulatory measures?

It begs the obvious question: should regulatory oversight be established to oversee cryptocurrency exchanges such as Coincheck, Kraken and Coinmama? Of course, these measures will be evaluated over time, but the amount of hacks is increasing; it may be worth examining this more.

Crypto Security Security

Hackers aren't the only danger to cryptocurrency. It is possible to fall for scams and get fake digital currency. Bitcoin and other cryptocurrencies are also susceptible to theft or loss, even when the hard drive is crashed. Because cryptocurrency can be stored, it is considered a form of cash. 

These wallets could be stolen or even lost. Hackers can gain access to wallets stored in cloud storage. Yet, even if you keep your digital coins on your hard drive, they may not be completely secure. Your digital wallet may disappear with your hard drive if it crashes, and you will be left with nothing.

To store their cryptocurrency, many owners have turned to exchanges. But the deals can be hacked or stolen, as described above. The same goes for cryptocurrency. It is vulnerable to theft and loss as physical currency. Therefore, you should consider all possible options to protect your digital wallets if you want to enter the cryptocurrency market.

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