Last week we published a blog about the negative impacts trading platforms have on the usability of cryptocurrency. Today, we’re going to dig deeper into the subject of severe damage trading platforms create.
Ready?
First off, trading with cryptocurrency is the same as trading with any financial instrument. Which means not everybody has the keys to access trading platforms used for dealing with stocks. It’s kind of like a VIP-party: only the ones with specific skills or knowhow can attend.
Imagine the following scenario: you have some spare money you’d like to invest in some stocks. But, you cannot just invest. How it goes about, is that you’d either have to do it through a bank or a broker. Not because it’s overly complicated, but because it has its specifics. So, you enter a bank or contact a broker. Hopefully, they know what they’re doing and can advise you on what’s your best option for your hard-earned money.
Don’t risk just for the sake of risking
There’s this Russian proverb: “He who doesn’t risk never gets to drink champagne.”. The risk is great and most definitely a welcome part of all of our lives. But, sometimes the investment sum and the risk is too high, i.e., not worthy of it.
The investment thing, the ‘whole shebang’ is easy for a professional. It’s not as easy for a regular person off the street though. Meaning, if you’re just starting and have not yet had the chance to familiarize yourself (in depth) with the subject, don’t do it. Find someone who can do it for you.
Bear in mind that you can’t just start investing anyway. On many occasions, you’d have to go through training first. Which, luckily, also serves your financial interests in the long-term. So, it’s a win-win.
Or, you need at least one out of the following three: an advisor, a financial degree, or attended some relevant courses. Fair enough, right? Because stocks are financial instruments. It’s just too easy to lose your money when you don’t know all the perks. Of course, there’s always a possibility to win, but there’s also a huge danger to lose if you’re not aware of the whole context.
Trading platform is still a trading platform
Now, regards to cryptocurrency trading platforms – absolutely everyone can access those. And since cryptocurrency is still a financial instrument, it’s also a high-risk game. People without any financial education or know-how are in danger of losing their money. And it’s happening as we speak.
True, there’s a small group who knows how to trade, and they make a lot of money out of it. But that percentage is tiny. Those people tend to show off with their earnings and even promote their unfathomable results.
This kind of behaviour attracts people who don’t have the necessary know-how for trading, at least not at the same level. And the result is that they lose because they don’t know what they’re doing. The mentioned fact doesn’t stop them from having their hopes flown all the way to space though.
The reason for that is medias consistent message, “crypto is THE thing to do.” Surely you’ve noticed? Profits (millions or even billions!) are promised, and people listen with awe. And it’s okay. It’s human nature because there are a lot of us in need for more cash. We like to dream. And we should dare to dream. We want to improve our living standards and lifestyle, buy smart gadgets that make our lives easier, go travelling and start a business we always wanted.
It’s not just having a ball though
The Dagcoin family firmly believes that becoming rich with crypto is possible. Very much so. But, right now, there’s not enough integrity in the world to stand up and talk about the threats. Everyone should dare to dream, but everyone should dare to speak about the threats as well.
So, trading platforms should have somewhat a barrier for entry. Risk taking shouldn’t be too easy, because it could end up losing you your hard earned money. Financial education (or at least a deep understanding of it) is a must; proper training should be involved as well — also, an advisor who will keep a constant eye out on the movements in the crypto-verse.
All in all, we truly hope that the current way will change soon. We don’t want to see more people get burned. The change is needed so that the world would be a fairer place for every single one of us. So that regular folks without any prior knowledge on the financial stuff could also benefit from the use of cryptocurrencies.
Read more: who your money belongs to and who the value of dags is based on.
Do you agree? Or maybe disagree? Get in touch!
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Originally published on our website at dagcoin.org on November 29, 2018.