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TOP 3 LEGAL RISK FACTORS OF
CRYPTOCURRENCY FOR INVESTORS
BUSINESS RISK
 The risk of cryptocurrency is because they are still in their
infancy and hence exposed to a significant degree of
unpredictability. Speculators aiming to benefit from the
short- or long-term holding of digital currencies have flooded
online trading platforms, resulting in a significant increase in
trading activity.
 When it comes to the legal risks of cryptocurrency, there is
no backing from a central bank, a national or international
organization, assets, or other forms of credit. Instead, the
value of cryptocurrencies is determined solely by the value
that market participants place on them through their
transactions. As a result, when confidence in cryptocurrency
is lost, the risk of trading cryptocurrency activities can
collapse, causing a steep drop in value.
CYBER & FRAUD RELATED RISK
 Because cryptocurrency is essentially a cash currency, it has
attracted the attention of a large segment of the criminal
community; these criminals can break into cryptocurrency
exchanges, drain cryptocurrency wallets, and infect
individual computers with malware that steals
cryptocurrency.
 As more and more transactions are made on the internet,
hackers increasingly target individuals and service processing
and storage locations, using techniques such as
spoofing/phishing and malware. When it comes to protecting
their cryptocurrency investments against the problems and
risks of cryptocurrencies, investors must depend on the
strength of their computer security systems and the strength
of security systems offered by third parties.
OPERATIONAL RISK
 As part of the benefits of using an established centralized
clearinghouse to ensure the authenticity of financial
transactions, there is also the capacity to reverse financial
transactions in a coordinated manner; this is not
achievable with a cryptocurrency. Because Bitcoin
accounts are cryptographically guarded, access to the
funds held in a Bitcoin account is very probably not
possible to recover if the “keys” to a Bitcoin account are
lost or stolen and later removed from the owner’s
possession.
TO KNOW MORE ABOUT
CRYPTOCURRENCY
VISIT US AT
https://www.universalcryptosignals.com/

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Top 3 legal risk factors of cryptocurrency for (1).pdf

  • 1. TOP 3 LEGAL RISK FACTORS OF CRYPTOCURRENCY FOR INVESTORS
  • 2. BUSINESS RISK  The risk of cryptocurrency is because they are still in their infancy and hence exposed to a significant degree of unpredictability. Speculators aiming to benefit from the short- or long-term holding of digital currencies have flooded online trading platforms, resulting in a significant increase in trading activity.  When it comes to the legal risks of cryptocurrency, there is no backing from a central bank, a national or international organization, assets, or other forms of credit. Instead, the value of cryptocurrencies is determined solely by the value that market participants place on them through their transactions. As a result, when confidence in cryptocurrency is lost, the risk of trading cryptocurrency activities can collapse, causing a steep drop in value.
  • 3. CYBER & FRAUD RELATED RISK  Because cryptocurrency is essentially a cash currency, it has attracted the attention of a large segment of the criminal community; these criminals can break into cryptocurrency exchanges, drain cryptocurrency wallets, and infect individual computers with malware that steals cryptocurrency.  As more and more transactions are made on the internet, hackers increasingly target individuals and service processing and storage locations, using techniques such as spoofing/phishing and malware. When it comes to protecting their cryptocurrency investments against the problems and risks of cryptocurrencies, investors must depend on the strength of their computer security systems and the strength of security systems offered by third parties.
  • 4. OPERATIONAL RISK  As part of the benefits of using an established centralized clearinghouse to ensure the authenticity of financial transactions, there is also the capacity to reverse financial transactions in a coordinated manner; this is not achievable with a cryptocurrency. Because Bitcoin accounts are cryptographically guarded, access to the funds held in a Bitcoin account is very probably not possible to recover if the “keys” to a Bitcoin account are lost or stolen and later removed from the owner’s possession.
  • 5. TO KNOW MORE ABOUT CRYPTOCURRENCY VISIT US AT https://www.universalcryptosignals.com/