Cons in Investment

Chance of Performing Illegal Activity Bitcoin transactions have a high level of security and anonymity, making it difficult for authorities to track users or details by wallet address. However, Bitcoin has previously been used for many illegal operations, such as buying drugs on the dark web. In addition, some people use cryptocurrencies to convert illegally obtained funds through trusted intermediaries and obfuscate the source.

High Loss Risk Self-risk is a lack of ownership and power over cryptocurrencies. If something goes wrong, you make no claim. No company controls this money, so you can't claim it. If you run into any problems, you can't report it to anyone. Therefore, whenever you choose a wallet, make sure it has good reviews and is reliable. Another thing to consider before using cryptocurrencies is that you know your country's current cryptocurrency regulations.

Highly Volatile Market The Bitcoin market is very volatile. Estimating a chart of changes in the value of Bitcoin is really difficult. It is not possible to predict when the value will rise or fall. You need to be a competent analyst and researcher and familiar with the news and trends of the Bitcoin market. When investing in cryptocurrencies, you need to be prepared for any situation.

Risk of Cyber Hack Cryptocurrencies are incredibly secure, but exchanges are not. Most exchanges store your wallet information in order to use your user ID correctly. Hackers can steal this information and access a large number of accounts. Once accessible, these hackers can quickly move funds from such accounts. In recent years, several exchanges, including Bitfinex and Mt. Gox has been hacked and millions of dollars worth of Bitcoin have been stolen. Currently, most exchanges are very secure, but there is always the possibility of another hack.

No Refund Policy If the parties disagree, or if the funds are mistakenly transferred to the wrong wallet address, the sender will not be able to reclaim the currency. Many individuals can use this to scam others from their money. Since there are no refunds, you can easily make up for transactions that you have never received a product or service.