Reasons why you should NOT trade cryptocurrencies

AniLorak posted:

BluePanther posted:

AmDiab posted:
I see, now the uptrend is already started! & the buying momentum is really high. Nice to see, the buyers.

wrong thread

That means, this thread is only for negative discussion on Crypto? Is it?

As the thread title states.

Additionally, the first post states:

[

BluePanther posted:
This thread is in response to Leo23's discussion: 'Trading the cryptocurrencies Bitcoin,Etherium, Litecoin etc....'
https://www.myfxbook.com/community/general/trading-cryptocurrencies-bitcoinetherium-litecoin-etc/1513362,1

I am blocked and unable to post in his thread, but I would like to share some important information related to cryptocurrencies that all investors/traders should be made aware of prior to their foray into this new market.

My only questions are:
- Is this another case of Tulip-mania?
- Does Leo23 have a vested interest in garnering support for investment interest in cryptocurrencies?

Here is an important article I think the community should read to get a better understanding of recent growth in cryptocurrency demand (specifically BTC):

https://protradingresearch.com/2017/12/14/one-bank-believes-it-found-the-identity-of-who-is-propping-up-the-bitcoin-market/

Sharing (information) is caring. 😎 Feel welcome to share your personal and professional opinion on cryptocurrencys, especially if Leo23 has blocked you from his thread. Please backup all opinions with evidence where possible. Unfounded opinions, posts contrary to generally-accepted social norms of respect, and posts in breach of myfxbook's Terms of Use are deemed inappropriate and may be reported.

Full disclosure: I have invested $0 in cryptocurrencies, and have 0 intention to do so any time soon. The phenomenal gains are the only reason it has caught my curiosity. I will continue to trade 'normal' forex only TYVM.

Please note specifically:
'Please backup all opinions with evidence where possible. Unfounded opinions, posts contrary to generally-accepted social norms of respect, and posts in breach of myfxbook's Terms of Use are deemed inappropriate and may be reported.'

Don’t trade Crypto’s since, till now it’s an unstable market!

AmDiab posted:
Don’t trade Crypto’s since, till now it’s an unstable market! But you can invest your money here with a long term view (if you have knowledge on block chain & crypto).

I prefer trading it personally.
The more I look into it, the more I think it goes by normal technical analysis.

jamesgwyther posted:
I prefer trading it personally.
The more I look into it, the more I think it goes by normal technical analysis.

No reference cited. Wrong thread.

AmDiab posted:
Don’t trade Crypto’s since, till now it’s an unstable market! But you can invest your money here with a long term view (if you have knowledge on block chain & crypto).

No reference cited. Wrong thread.

jamesgwyther posted:
I prefer trading it personally.
The more I look into it, the more I think it goes by normal technical analysis.

AmDiab posted:
Don’t trade Crypto’s since, till now it’s an unstable market! But you can invest your money here with a long term view (if you have knowledge on block chain & crypto).

Please post useful information that informs myfxbook members.
Please cite references to backup all opinions: 'Opinions are like a**holes: everybody has one and most of them stink.'
Please be consistent with thread topic: 'Reasons why you should NOT trade cryptocurrencies'

Beware Of Crypto Risks - 10 Risks To Watch (Jul 21, 2018)
https://www.forbes.com/sites/dantedisparte/2018/07/21/beware-of-crypto-risks-10-risks-to-watch/#36324fa65f17

Inside the crypto world's biggest scandal (Jun 19, 2018)
https://www.wired.com/story/tezos-blockchain-love-story-horror-story/

How Wired lost $100,000 in BitCoin (May 28, 2018)
https://www.wired.com/story/wired-lost-bitcoin/

someone f***ed up and lost ALOT of money (Oct 29, 2011)
https://bitcointalk.org/index.php?topic=50206.0

The Story of the ‘Accidental’ $137K Bitcoin Payment Just Got Very Strange (Apr 27, 2016)
https://motherboard.vice.com/en_us/article/wnxxd5/someone-tried-to-pay-5-in-bitcoin-sent-137k-instead

Cops Arrest Infamous SIM Swapper Who Allegedly Stole $14 Million in Cryptocurrency (Oct 12, 2018)
https://motherboard.vice.com/en_us/article/7x3may/cops-arrest-sim-swapper-14-million-cryptocurrency

The ONE Thing that MUST Change for Bitcoin and Crypto to Truly Grow in 2019... (Dec 29, 2018)

The end of crypto currencies? – Commerzbank (Dec 31, 2018)
https://www.fxstreet.com/news/the-end-of-crypto-currencies-commerzbank-201812310942

There are many Reasons Why You Should Avoid Investing in Bitcoin and Other Cryptocurrencies
in which some are

1. Volatility
Bitcoin and altcoins are very volatile, meaning that you could lose your shirt and your trousers if you buy high and sell low. In December 2017, Bitcoin hit its highest price at about $20,000. Fast forward to April 2018, when one Bitcoin is worth about $6,700, a 66.5 percent decrease in value. If you bought in the hype of December 2017, you would be out about $14,000 and for many people, that’s big money.

2. Security
In many countries of the world, banks are backed by the government. In the US the FDIC will ensure your bank account up to $250,000. Many exchanges do not insure your funds in crypto. If they are hacked and your proceeds are lost, you just lost all your money, unless the exchange can reimburse affected users.

3. Value or lack thereof
Bitcoin and cryptos are not backed by anything except belief. But then again, fiat currencies are backed only by the belief in the government that controls it, but at least cash is accepted everywhere. Crytpo derives its so-called wealth from mathematic formulae that are only understood by few.

4. Legality
Crypto is still very new, especially to governments. They are not sure how to regulate it or how to tax it. In some countries, there is a call to have it banned. Imagine being vested heavily in crypto and then finding out it is banned. How can you get your money back? Will you face fines and penalties for owning it? It’s not safe to own in a country that is about to place a ban on crypto.

5. Environmentally unfriendly
The power required to run mining rigs draws so much electricity, that it has become an environmental issue, that consumes valuable resources, pollutes the earth and even disrupts time. In China, Bitcoin mining is estimated to use up to four gigawatts of electricity, equivalent to three nuclear reactors' production levels.

6. Scams
Nothing is worse than being scammed out of your hard-earned cash. Scams and Ponzi schemes abound on the Internet with fake exchanges, fake ICOs, and other ways to steal your money. Whatever seems like an amazing way to double, triple, or quadruple your money in a short time, it probably is. You might also face long withdrawal periods to get your gains out of a rigged system. These are all part of Bitcoin investment scams and should be avoided.

I used to believe in $10k per 1 bitcoin before ending of 2018, but as we can see it is $3763 for now. So sad situation ,beause there is no reason to stay investing in bitcoin and also, it looks like a dropdown before a monumentum upward in some way.

Crypto is a very speculative market. The fact that there are such divergent views on this thread shows that no one really knows what the long term scenario is likely to be. I think that a crypto probably is worth a small investment if price falls below $3000 but I am used to risky investments and I would only risk a small amount of capital. For more mainstream investors it is probably best to look for more standard asset classes

Amancio posted:
Crypto is a very speculative market. The fact that there are such divergent views on this thread shows that no one really knows what the long term scenario is likely to be. I think that a crypto probably is worth a small investment if price falls below $3000 but I am used to risky investments and I would only risk a small amount of capital. For more mainstream investors it is probably best to look for more standard asset classes

Your way and investing approach is so clever. There is a huge risk % to invest a big amount into bitcoin market. In any way, if the BTC become up to 100k (as some of people think), it is a nice for you to have at least 0.3 btc bought by $3000 😄

Before bitcoin $20 000 and now $3500, lol😀

David331 posted:
Before bitcoin $20 000 and now $3500, lol😀

and before 20,000 it was 1,000

It is better to invest on Forex. Bitcoin never more will return to the price of $20 000

David331 posted:
It is better to invest on Forex. Bitcoin never more will return to the price of $20 000

Forex investing is also a risky business and needs a specific rules such us diversification and money management.

I agree. Crypto is dead. Even forgetting the fact that the price has fallen massively there just isn't the interest there any more. Trading volumes are way down. The fad has passed and everyone is looking for the next big thing.

NascarLover posted:
I agree. Crypto is dead. Even forgetting the fact that the price has fallen massively there just isn't the interest there any more. Trading volumes are way down. The fad has passed and everyone is looking for the next big thing.

Yes, everyone is waiting for the bullish movements as like the 2017! But maybe it will take such a long time to happen.

The problem with cryptos - we don't know their real (intrinsical) value. Gold will not go to zero, because it has a real value, probably near 600/800 USD. Corn will not go to zero... currencies are the same. But no one was able to tell me the real value of a cryptocurrency.