Cryptocurrency is the digital currency that’s not government-issued or backed up by government assets. It is the peer-to-peer currency mainly used online and for online transactions. Many young people claim they are fully into cryptocurrency trading and hoarding as business. In this post, we’ll be stating why you shouldn’t make cryptocurrency trading and hoarding your main source of income.
There are many reasons why you shouldn’t make cryptocurrency trading and hoarding your major or main source of income, and we’ll be listing these reasons in this post.
However, before we go into these reasons, let’s look at some little facts about cryptocurrencies, and their hoarding and trading.
What is Cryptocurrency, and Cryptocurrency Hoarding and Trading?
1. Cryptocurrency is the digital money or means of exchange that’s cryptic, and thus, it is not controlled by government or its institutions.
2. There are several cryptocurrencies in the world, with their different level of values. However, the cryptocurrencies with the best value are Bitcoin and Ethereum.
3. Cryptocurrencies are mostly used online as means of exchange; for buying and selling of good and services.
4. They rise and fall in value rapidly unaffected by government regulations. Thus, the economics of the value of these currencies is dependent on the market.
5. It is a peer-to-peer exchange and purchase. Thus, the company at first sells these cryptocurrencies to the first set of users. Then, they are circulated among the users.
6. Every cryptocurrency has a limited number to be released to human use and market. This is to ensure it is scarce and valuable. The more scarce and acceptable it is, the higher the value.
Why you shouldn’t make Cryptocurrency Trading and Hoarding your main Source of Income …
1. Cryptocurrency is a digital currency meant to be used as a means of exchange and not for trading. Currencies are mostly meant to serve as means of exchange, not for trading. It is better not to trade with it all, or to trade with care.
2. It is not regulated, and thus can be largely unsafe. You might get your funds lost, or it can rise and fall in value faster than you would expect. So, it is better to buy the currency or trade with it with utmost care.
3. Cryptocurrency trading and hoarding is not a sustainable and entirely profitable business. If you check well, the profitability of this business of trading and hoarding cryptocurrency is low. Thus, you will make money and still lose a good amount of this money. The market is not stable at all.
4. This business ties down your funds that you would have used to do other profitable physical businesses. Instead of your money and capital to be making money for you, it is devaluating or remained the same in cryptocurrency.
5. Due to the multiplicity of cryptocurrencies and coins, you might be confused on which one to invest with. There’s high probability you might invest or trade in shit coins, too, thus, losing your money. For fact, the people who have lost money or stayed same in crypto business are more than the people who have made money.
6. There is also the chance of losing the password or access to your vault unlike the physical banks or businesses where you can’t totally lose out. There are millions of dollars worth of cryptocurrencies which have been lost.
7. The level of fraud in cryptocurrency sector is also high. Thus, there is a high chance you’ll lose your money in cryptocurrency than in normal banks. If you intend doing this business or doing it already or using the digital currency, be careful and secure it well.
8. The use and adoption of crypto is not accepted worldwide, and even in Nigeria, and so, it affects the profitability and value of th currencies. You should deal with and handle the use of these currencies with care.
9. Old time investors and industrialists like Warren Buffett and Bills Gate have constantly preached against cryptocurrency trading and hoarding. Thus, it is not going to be widely accepted or recognized any time soon.
10. Cryptocurrency is a means of exchange, and remains as that; therefore, it is not an asset.
The reasons why you shouldn’t make cryptocurrency trading and hoarding your main source of income has been explained in this post. You should keep to what is written. It will guide you very well.