Ever since Bitcoin appeared on the horizon, the way financial transaction environment has been transformed. Based on Blockchain technology, Bitcoin ensured that peer to peer transactions happened at almost real-time without any third party interference and at no or absolute minimal cost. It also gave rise to a community of cryptocurrencies, which have since become the symbol of tech disruption in the field of banking and finance.
But cryptocurrencies aren’t just fancy toys in the world if technology. They are assets which have provided great returns on initial investments. Bitcoin hit jackpot when it touched $20000, in December 2017. This enabled early investors to mint money. It also established the viability of cryptocurrencies as a means to invest in. The future lay in it and it was loud and clear. However, in the first quarter of 2018, Bitcoin crashed. It went below $6000. A classic show of how volatile any form of currency can be.
Hence, the question that arose amongst the thousands who had invested in cryptocurrencies: Is it safe to trade in Cryptocurrencies or as the heading of this article goes, can crypto trading be trusted?
You see, trading in any commodity involves a certain amount of risk. The volatility of the market is often linked to myriad reasons and not just trading alone. It can be attributed to economic policies of respective governments, financial decisions, strife et al. There are a few countries which have banned cryptocurrencies it kept their usage under review. All these factors lead to a certain instability in the crypto market and influence the price.
Discrepancies in the ICO also lead to shock upheavals.
However, given the way technology works with the passage in time, should allay the fears of enthusiasts and investors. One of the biggest advantages that cryptocurrencies have is its near indestructibility. Because it does not have a form, crypto cannot be forged or modified. It is a digital token passed between peers using digital wallets. Every wallet has a private and public key. The former is only known to its owner while the latter is used to transfer assets. Digital walkers are almost impossible to hack. Wallets are broken into software wallets and hardware wallets, serving various purposes.
The cryptocurrency system is based on blockchain technology. One of the advantages of this technology is that it creates a universal ledger thus helping all investments stay safe.
