Benefits of Trading Bitcoin
Bitcoin allows money to be transfer online quick, secure, and without any third-party. Bitcoin is store in Bitcoin Wallet which is very secure. Unlike bank, if you are transferring money to another country a third-party is needed. Bitcoin also helps to reduce the fee paid for the third-party, bitcoin only has a transaction fee which is a lot lower than the fee charged by the third-party. Bitcoin system is entirely peer-to-peer, traders will not get interrupt by any third-party. Bitcoin transfer very fast different from bank need 5 to 10 working days to transfer money from a country to another country.
Manipulation in Bitcoin Trading
These days, cryptocurrency is view as a scam because of the manipulation of the price of cryptocurrency and the technology of blockchain is decentralized which causes a lot of investors got scammed and exchange got hacked. One of the main reasons people are involved in Bitcoin Trading is because the rich can easily manipulate the price of cryptocurrency and they get richer. For the rich, it is easy for them to earn a high amount of profit by attracting small investors and causing the small investor to lose tons of money. According to Asolo (2018), one of the common skills done by the rich is called “pumps and dumps” which mean that the rich pump the price of the cryptocurrency to attract small investor, when the small investor starts to invest more and more money, the price of the cryptocurrency drops. These methods only benefit the rich.
Scamming of bitcoin
The Investor involves themselves in cryptocurrency due to its decentralize nature and this make scammed scam the investor easily and still will not take any punishment. There are many possibilities why hacker can scam investors easily, one of the possibilities is the hacker uses complex strategies to trick investors. Hackers can easily get their hands on the latest hardware and software and this causes them to proceed their heist easily. During 2018, Larcheveque stated that an estimated 2.7 million USD worth of cryptocurrency got stolen daily. The statement proves that most of the exchange and service provider of cryptocurrency is lacking the latest security technology. On the other hand, as the popularity of cryptocurrency increases, the amount of less trustworthy exchange increases, there are even some exchanges disappears overnight without any notice (Price,2018). Many investors have been scammed by the tricks, due to the lack of knowledge about cryptocurrency.