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Many living Congolese are currently interested in cryptocurrency which seems to be a new trend of making money on the internet.
However, many also do not know the side effects of this crypto currency. Reason why, in this article, we thought to tell you about 5 disadvantages of the cryptocurrency that you will have to know in the DRC. This will allow you to avoid some surprises especially for beginners. Disadvantages of cryptocurrency: reminder of some notions
For those of my Congolese compatriots in the DRC who do not know cryptocurrency, just remember that it is a digital currency that has the particularity of being encoded and registered in a ledger called blockchain.
This currency is not subject to any country’s financial legislation. There is therefore no national or international bank that regulates it. That is to say, the Central Bank of Congo does not have control over this kind of currency.
Hence, it facilitates the exchange of goods and services between individuals or companies without going through the services of banks. You want details about this, please read my article on cryptocurrency.
What are the disadvantages of cryptocurrency that the Congolese must know?
As we pointed out in the introduction, many of our Congolese compatriots in the DRC are interested in cryptocurrency and they want to know how to make money from this digital currency.
However, it should be noted that many win of course, but others lose money simply because they have not been warned about the disadvantages of cryptocurrency.
As it is our duty to keep you informed on all aspects that fit with online business, we had the courage to list for you 5 major disadvantages of cryptocurrency in the DRC.
And the Bible says that my people will no longer be confused, we hope that it will be the same for everyone who has the opportunity to read this article.
Here are the 5 disadvantages of cryptocurrency in the DRC.
1. Cryptocurrency in the DRC has facilitated the scam on the internet
Cryptocurrency has facilitated the scam on the internet because there has been a proliferation of investment sites that for the most part are pyramid schemes whose mission is to systematically steal investors’ money.
These sites have no real products to sell, but rather highlight their spurious plans with promises of monstrous profits in order to gain the trust of investors.
There are many examples. Let us mention the case of MyGoldrev whose promotion was made by our Congolese compatriot from the DRC Serge KASANDA. This site has plunged our population into grief. Many lost money that they could use for other purposes.
There is also Loantech and other investment platforms that have operated in the same philosophy. These scammers have taken advantage of the independent nature of cryptocurrency to exploit it as a means of payment on their sites.
They know that by doing so, they will not be bothered by the Governments of their countries. I have mentioned this in several of my articles and more particularly in this video that I present to you.
2. Investing in cryptocurrency presents risks (currency volatility)
Would you like to invest in cryptocurrency in DR Congo? But let me tell you, it’s a high-risk investment. This danger is justified by the volatility of cryptocurrency.
Indeed, the cryptocurrency market presents a lot of instability. Its course can change at any time by increasing or either falling.
Hence, it is always difficult to predict what one should earn by investing in cryptocurrency.
Moreover, those who do daily trading have already witnessed these adventures. You can open a position with a profit margin of +8% on the first day, on the 2nd day at +17% and be surprised by the drop to -25% on the third day. If you are a beginner, you risk losing your money and regretting it.
3. Risk of hacking and loss of cryptocurrency
As it is a digital currency, its preservation is carried out on digital media called wallet or cryptocurrency wallet, including storage software and hardware such as the USB key.
However, the notion of computer viruses accompanies these cryptocurrency storage media. Take the case of centralized wallets called hotwallet.
It can happen that the platform is hacked by cybercriminals and consequently make you lose money in your account.
The Binance platform (online trading platform), was the victim three years ago, of an attack that made it lose $ 40,000 million. It then had to reimburse its customers a part of this sum to compensate them. As for the hardware wallet, this medium can be infected or go down and cause the loss of cryptocurrencies.
It is always recommended to keep cryptocurrency on secure wallets such as Trustwallet.
4. Cryptocurrency is still hated in some countries around the world
Cryptocurrency is absolutely not welcome in some countries of the world. It is considered a vector of drug trafficking and money laundering.
Although some countries allow its transaction through traditional banks, in others, any use of cryptocurrency by financial institutions recognized by the Government is prohibited.
5. Slow down transaction speed in ledgers
Most people think that the cryptocurrency transaction happens quickly; it still has limitations. The bitcoin blockchain for example encountered for a period of such saturation that a transaction made had to wait 3 to 7 days to be validated.
The providers of cryptocurrencies still recognize this problem. This can be a bad experience as there is an increase in demand for cryptocurrency.
Disadvantages of cryptocurrency: What should you do before you start?
As you have heard, cryptocurrency is not a simple notion. Given the disadvantages that we have just listed, it will be necessary to train before starting.
There are currently on the net sites on the theme of cryptocurrency providing you with important notions to get started. You should avoid investing your money on dubious platforms at the risk of losing your money.
To invest in trading, a minimum of training is required before embarking on this adventure. I wrote the articles on this theme, which explain how you can understand this notion of cryptocurrency and make money with it. Simply click on one of the links below to access it.
Cryptocurrency is truly the future of tomorrow; it will of course change the lives of many. However, if we do it suddenly, we risk being disappointed by the disadvantages of this currency.
The best thing to do when you are interested in it is to train before considering the investment. You can say: Did those who became rich with cryptocurrency also train? Of course you do!
While some have seized occasional opportunities, others have spent time learning important concepts before making a decision. It is at your risk to invest in cryptocurrency in case you do not train.
Guest posts by JC Mukuna from the Business and Development Blog
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