Reasons why you should NOT trade cryptocurrencies

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.

We are keeping a close eye on ETH at the moment ,a break of 100 we will consider a Long position short term.

Arcferreira posted:
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.

This is a really great argument! Well done!

Investing in btc is a dangerous business while it has a horizontal direction.
Not a good news for BTC today is falling. Will it continue dropping? My target is 3322.

Is there ANY cryptocurrency, which could at least maintain its value? BTCUSD is completely worthless for any practical purpose.

HyperAI posted:
Investing in btc is a dangerous business while it has a horizontal direction.
Not a good news for BTC today is falling. Will it continue dropping? My target is 3322.

Right now sellers are dominating this trading pair; so no way to expect initial bullish moves right now.

Crypto markets have been flat for the last 2 months. It could signal that crypto is now starting maintain it's value and be less speculative. I read that there are some cryptos being developed that will be regulated and this could help them actually be usable as currency

The crypto bank really behaves more similarly to real currencies lately.