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Is Crypto Trading Legit?

Thu Dec 17 2020 18:16
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You may have seen on government websites or bank websites, that beware of crypto trading. But on the other side, you have seen how people invest a lot of money in the cryptocurrency market. 

So what is the truth? Is crypto trading legit or not? Well, there are different opinions on the legality of these digital currencies.  

To understand this you have to know everything about blockchain technology. Blockchain technology is the base of all these virtual currencies and it is traded after mining. 

A crypto miner uses mechanical miners to produce cryptocurrencies. These days cloud miners are also in use.  

After mining, these currencies are traded via electronic trading platforms or the bitcoin exchange, Litecoin exchange, or any other trading platform. If everything is being done at a high level then why do people ask that crypto trading legit or not? 

This question comes from various circumstances. Various events in the cryptocurrency markets lead to this doubt in people’s minds. But what are these circumstances and events?  

Dive into this crypto trading to know more 

Let's find out the right information on this topic. So here in this topic, we will tell you why people are still in doubt about whether crypto trading is legit or not? While there is a high volume of trading in cryptocurrencies. 

Why Is There Doubt That Crypto Trading Legit Or Not? 

So the first question is why you are here? Because you doubt the legality of cryptocurrency, right? But why does this question come to your mind? Many reasons are there that create a doubt related to this digital currency.  

From bitcoin mining, bitcoin wallet, bitcoin price, and all the other things are under doubt. These doubts lead people to ask the same question: crypto trading legit or not? 

So here we will clear all the doubts from your mind. We will tell you it is legal or illegal. But before you know that, we would like to tell you about some reasons behind this doubt.  

Myths 

Crypto-currency has millions of myths. Most of the bitcoin news on the web is just based on myths. One who never trades bitcoins or never buys bitcoins will speak about bitcoin ATM and myths about it. 

All of these myths spread false news because it is easy to spread myths and fake news related to the crypto market. Because this market is not centralized. Myths are the reason why people ask crypto trading legit or not? 

Financial Scams 

There are many financial scams held in the cryptocurrency trading market. Many bitcoin miners were fooled and some people were fooled by the name of investment in digital money. 

Many startups raised fundings for cryptocurrency mining or a new payment system. All these financial scams put a question mark on the legal status of cryptocurrency.  
  • Fake Bitcoins -  Exchanges Many programmers and hackers developed phishing websites. They offered a low bitcoin exchange rate. People paid fraudsters money and were fooled.  Most of the scammers accepted payments through a Bitcoin address or virtual money online wallet rather than Paypal. Due to encryption, these scammers are untraceable.  
  • Ponzi Schemes - Some people think that cryptocurrency is a Ponzi scheme. They think this way due to some Ponzi scheme scams held in the name of crypto trading.   Fraudsters collected funds from people as crowdfunding and promised them high returns. A lot of people are victims of these scams.  
  • Telecalling Frauds - Many fake telecallers called traders, investors of the bitcoin economy and asked them for pending taxes. They also fooled people. Such scams are the reason why people ask if crypto trading legit or not?  

Other Illegal Activities 

Above financial scams can never be traced because the bitcoin network doesn't work under any central-bank. But other than finance, there are some criminal offenses related to cryptocurrency. These illegal activities are also raising a question on the cryptocurrency market.  
  • Kidnapping - Many times it has been seen, when kidnappers asked for ransom money through bitcoin transfer.  
  • Gambling - Many online gambling websites also use cryptocurrencies. Due to its involvement in gambling people ask, is crypto trading legit or not?  
  • Money Laundering - A lot of money laundering cases are there related to cryptocurrency trading.  
  • Hacking - Hackers used to hack websites and asked for money through bitcoins. Many ransomware attacks were held on many popular websites.  
  • Rapid Growth - Rapid growth in crypto exchange platform, BTC price, payment processor development has put a question mark on the legality of crypto. 
  • Anonymity 
  • Its anonymous status is also a high reason behind these doubts. There is no information on the Bitcoin Foundation.  Whether Satoshi Nakamoto is the founder or not, it is still a mystery. So due to the anonymity level of a cryptocurrency wallet, it is under doubt.  

What Is The Truth: Crypto Trading Legit Or Not? 

Yes, there are thousands of reasons behind the question which ask crypto trading legit or not. But what is reality? Crypto trading is legit like any other centralized exchange. Most exchanges are regulated, but the cryptocurrency market is never regulated. 

A private key is a medium of exchange to transfer virtual cash. That is why it is more related to the black market.  

But that doesn't mean every bitcoin exchanged online is illegal. A blockchain wallet for Bitcoin protocol never discloses the identity of the sender or receiver like a traditional currency. But it doesn't mean crypto is not legit. 

It Is Legit But Decentralized 

Payments systems, mining and trading, and everything related to this digital asset is decentralized. It is not a centralized market like the foreign exchange market or the stock market. 

No authorities are there to regulate crypto trading. That is why the internet raises a question: is crypto trading legit or not?  

What does Decentralization mean? 

But what does decentralization of digital coins mean? Well, decentralization means that the cryptocurrency market is not controlled by any Government authority, finance institution, central banks, reserve banks, or any other institution. It is an open-source platform, where anyone in this world can buy or sell digital currencies.  

Then, Is It Safe To Invest In Cryptocurrencies? 

Now you may ask, is it safe to invest in cryptocurrencies. Then the answer depends upon where you live. Because many countries and states have some restrictions on cryptocurrencies. 

The other thing to keep in mind is that you must invest via a trustworthy trading market or exchange.  

Also, your broker or service provider should have an authentic reputation in the market. You can invest in cryptocurrencies without any worry. No need to ask yourself a question that is crypto trading legit or not? Because you can check reviews before registering yourself as a cryptocurrency trader online.  

Read reviews about the platform that you are going to use. Read reviews online about the broker and cryptocurrency through which you will invest your money in the market. After being satisfied with the authenticity you can invest your money.  

Summary - Is crypto trading legit  

So what is the answer to the question: is crypto trading legit or not? The answer is yes crypto trading is legit. But there are some important things that a crypto trader should have to keep in mind. Many cryptocurrency fund management companies or trading services providers are there to fool you. 

It is up to you how you find out the legal and authentic sources for crypto trading. There are many trustworthy platforms available. You must trade cryptocurrencies through these websites only.  
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