LIST OF MY LITTLE DISCUSSION IN THREE (3) SECTIONS...
*DICTIONARY MEANING ON CRYPTOCURRENCIES.
*DIFFERENT FORM OF CRYPTOCURRENCIES.
*RISK INVOLVED IN CRYPTOCURRENCIES.
SECTION (1)
DICTIONARY DEFINATIONS.
Dictionary meaning/definition by Mariam webster, defines Cryptocurrency as ang form of currency that only exists digitally and has no central
issuing or regulating authority, but instead uses a decentralised system to record transactions and manage the issuance of new units. While
relying on cryptography to prevent counterfeiting and fraudulent transaction.
The Financial Action Task Force (FA/TF) also give a definition, defines Cryptocurrency as a math-based decentralised convertible virtual that is
protected by cryptography, is it incorporates principles of cryptography to implement a distributed decentralised secure information economy.
SECTION (2) TWO
DIFFERENT FORM/ KINDS OF CRYPTOCURRENCIES
Bit coin 💰 (BTC) which launched in 2009 to be precises was the first Cryptocurrency, however the last decade has seen the launch of other alternative Cryptocurrencies.
Alternative coin includes the following as ....
1.Ethereum (ETH).
2.Tether (USDT).
3.Cardono (ADA).
4.Ripple (XRP).
5.Polka dot (DOT).
6.Binance coin (BNB).
7Chain link (LINK).
- Monero (XMR).
9.Litecoin (LTC).
- Dogecoin.
- Bitcoin cash (BCH).
12.Stellar (XLM).
Bulletin coins.
ETC...
Bitcoin continue to lead the pack of Cryptocurrencies in terms of market capitalisation, user base and popularity.
SECTION (3) THREE
ALL RISK INVOLVEMENT.
As the user base, popularity and demand for Cryptocurrencies increase, so have concerns that sure an unregulated and decentralised system
may became a threat to society and a tool for criminals, some of the risk involved in Cryptocurrency trading includes.
LEGAL RISK=
Cryptocurrencies are not legal tenders and are largely unregulated therefore, it may be difficult to enforce legal right in the court of law.
MARKET RISK =
Cryptocurrency has been identified as being highly volatiles as it is liable to rapid and unpredictable changes. It in volatility is furled by speculative demand and exacerbated by hoarding.
MONEY LAUNDERING AND TERRORISTS =
The anonymous nature of Cryptocurrency makes them susceptible to a host of nefarious activities such as money laundering terrorist financing and tax evasion.
CYBER FRAUD RISK =
Cryptocurrency has attracted a large set of the criminal community, these criminal can break into crypto exchanges drain crypto wallets, and in fact
individual computers with malware that steal Cryptocurrency. There is no perfect way to prevent technical glitches, human error or hacking as has been seen severally.
BUSINESS RISK =
Cryptocurrencies are not backing by a central banking system, a national or international organisation or assets or other credited their value is
determined by the value market participants place on them through their transactions. Any loss of confidence may bring about a collapse of trading activities and bring drop in value.
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