Challenge or opportunity? Sometimes, it’s all a matter of perspective. And it’s no different in the world of cryptocurrency, where neither challenge nor opportunity are hard to find.
In this article, we explore some of the issues faced by cryptocurrencies today. We also discover how you can turn these challenges to your advantage.
Crypto is volatile
It’s a well-known fact that the price of cryptocurrencies can fluctuate widely.
For example, in December 2017, Bitcoin was trading at an all-time high of nearly $19,000. By December of the following year, the price had tumbled to just over $3,000. As of November 2020, it had grown once more, topping $16,000.
Although this high level of volatility can scare away some traders, it also opens up opportunities to make money. Price drops can be a great time to buy crypto, particularly for anyone who has the time for a buy-and-hold strategy.
Peaks are, of course, the right time to cash out – but you have to be smart about your timing. Skrill makes it easy as you can buy and sell instantly to take advantage of price movements as they happen.
Cybertheft is real
Hackers are always coming up with new techniques to steal data and money online. Crypto is no different. Traders can and do fall prey to hacks.
One of the most important ways to look after your crypto is by having a secure wallet. With Skrill, security features are built in.
Crypto can be complex
Crypto can be complex, and many people rush into the world of cryptocurrency trading without fully understanding what they’re investing in.
They’re also not ready for price movements when they happen.
It’s important to remember that trading crypto is not the same as trading forex or regular stocks. The price of cryptocurrencies is affected differently by economic events and won’t necessarily follow the trend of traditional financial assets.
The good news is that anyone can learn about (and master) crypto. It doesn’t take long to read up on the basics and start feeling confident enough to begin trading.
Crypto can have a bad reputation
Although crypto has gone through a boom, it still receives some bad press. For example, there have been stories on criminals using crypto to move money anonymously.
Yet more and more people are looking at crypto as an innovative, secure way to transact. Cryptocurrencies are becoming a widely accepted form of payment online, increasing their appeal.
Making the most of crypto
Cryptocurrencies come with both challenges and opportunities. But if you take the time to understand how they work, you’ll soon learn how to use them to your advantage.
Cryptocurrencies are complex products with high price volatility. They are unregulated, without consumer or financial protections. Only risk what you can afford to lose.