Difficult Facts of Crypto Trading

Is Crypto experiencing a com-com type loss? Buyers should be aware of natural disasters in digital currency investments.

Photo courtesy of Quantitatives via Unsplash

Joe Biden made one last week “Carpet Drag” In the crypto world. One signed Executive Order Order the relevant federal agencies to start controlling crypto. Tens of thousands of endless cryptocurrencies and crypto token frauds will not come soon.

Forgive me for remembering endless Super Bowl XXXIV ads in 2000 for dot-com companies like Pets.com. This year’s cryptocurrency points remind me that dot com ads are the biggest water sign of the Internet age. I don’t know if history repeats itself at this point, but the parallel is horrible. At the beginning of the century, investors in dot com lost $ 5 trillion. One major technology fund lost 85 percent of its value in just a few months.

The news of Crypto World has come quickly and furiously over the past few weeks. They often highlight aspects of digital currency issues that fans want to forget. Here are some headlines:

Historical backdrop for crypto scams continues, including the mass theft of Bitcoin from MT Gox, including the hijacked Japanese exchange. Gerald Cotton, CEO of Canadian Bitcoin company Quadriga, has left investors with hundreds of millions in losses. He either stole their accounts to support a big lifestyle or he killed Bitcoin for his customers “key”.

Asked why he once robbed banks, well-known bank robber Willie Sutton once said, “The money is there.” Well, there is a lot of money in crypto – around three trillion globally, according to time limits.

This non-refundable $ 140 billion Bitcoin is not counted because passwords have been forgotten or lost because the cottage industry is booming and cannot be recovered. I like to imagine hypnotists coming into action with the idea, “Now you remember your Bitcoin password.”

While there are common risks for any investment, crypto creates a unique situation: direct theft. This problem of theft is not something that “investors” often understand until it is too late.

According to a cryptoto lawyer, “Anonymous trading and real estate scams have no choice but to take your wallet.

How right they are. A few years ago, I noticed that a few thousand dollars had disappeared from my bank account. Two cables each cost $ 2,500 to the Bank of Chicago and then to the Dominican Republic. Are you sure? I did not make those transactions. A call to Chase, followed by a meeting at my local branch, was investigated.

Within 24 hours, my money was returned… because they were available, and the transactions were visible to all bank employees. No blockchain is required for “transparency”. It took me years to undo the blockchain I wish the FBI engineer had found the hidden money.

Aside from the new Iris requirement for all crypto transactions to be recognized, the fact that many crypto investors are surprised is that there may be no way to trade crypto anonymously.

There are many ways for hackers to get into hot wallets and they are working to get into safe exchanges and cold wallets. Anyone familiar with Israeli technology knows that there are several cyber security companies that work to protect your digital data and assets. And who are you waiting for? Black Hat Army in North Korea, Russia, China, Nigeria and Iran ያህል to name a few. Freelance hackers are stealing crypto assets every day, every day. When they do not try to shut down pipelines, hospitals, power plants and cities, they pay crypto to be paid by crypto.

The January 6 rebels found the same thing when they said the FBI could read encrypted messages via signal and telegram. Crypto investors need to be aware that cryptocurrencies may be one step ahead of off-the-shelf encryption files used by some of the world’s largest and most commercially viable computer scientists. Secure encryption is only good if it is not proven to be a hacker.

This does not mean that Bitcoin and thousands of other crypto tokens and currencies are always dangerous to catch. Without major government or private security intervention, there is an industry of people who want to steal your crypto. Because it is not a registered trade, it, like gold stock trading, makes crypto-currencies easier for fraudsters. No one is crying, no one is answering the phone, no one is calling for help if your wallet is hacked. Whenever crypto enters a hot bag for business or transfer, it becomes a trap for these sharks.

Probably the last example is the $ 600 million stolen from Australia’s Poly Network by crypto “decentralized financial platform”. The hackers have publicly begged the hackers to return the money to their customers! If so SNL skit, many find it too far-fetched.

So, for these and many other reasons, I am depositing my assets in FDIC-insured banks, SEC-registered investment houses, and SIPC-insured brokers. “No one rings the bell above or below” is market law, but if history is a guide, Super Bowl ads for crypto investments may be the obvious sound you hear.

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