Even when it comes to crypto exchange payment, many people still frown because of the series of scandals of this still new market that bring a sense of chaos like the famous show America’s Next Top Model. But in fact, what are the major risks when investing in crypto?
Let’s find out with XAIGATE and come up with solutions!
1. Risks from ignorance
Yes, this is the main and most common reason for the risks that crypto users often have to bear. Experts from Blockchain Certik say: “The reality is that the losers are always the ones who play crypto due to ignorance…”
People of all ages can become victims of crypto scams, but the 45-60 age group is still the most scammed. I’m not saying that this age group is unwise, but because they are not very familiar with how new technologies like blockchain and cryptocurrencies work, they are easily blinded by the sweet promises of high profits. Some people tend to trust advice or word of mouth information from friends, family, online acquaintances, etc., and this is the source of many unfortunate incidents.
I think that because of the psychology of seeking profits to prepare for retirement or improve personal finances, many people of any age easily fall into the endless spiral of investment programs, even though they have no financial knowledge. Especially in the current context, when President Donald Trump plans to build a federal government bitcoin reserve, bitcoin is expected to accelerate strongly in the future.
READ MORE: Mr. Trump Won, We Should Get Used to Buy Food with Crypto From 2025
2. High price volatility
The price of cryptocurrencies can fluctuate wildly in a very short period of time. With Bitcoin, the profit is unlimited. It can increase by hundreds of %, but it can also double in a few hours. Don’t go all in with your assets to make money because you are impatient. Especially, never borrow money without a plan to pay it back to invest in this game.
This is very bad for business profits, especially for those businesses that are not prepared and have “set sail” in the cryptocurrency wave. These extreme fluctuations can make many businesses hesitate to adopt cryptocurrencies as a reliable payment method.
However, I tend to think that this is not too big a risk, because I believe that: serious business people and those who have invested properly will certainly anticipate some market fluctuations. Wise investors will not follow the crowd psychology and should analyze every development on a rational basis. Right?
3. Security risks
Security is an important topic in the cryptocurrency field. Although the industry focuses on safety, in reality, on-chain fraud crimes still occur quite frequently through software vulnerabilities.
In addition, fraud risks can also occur to crypto users when there are more and more forms of online fraud such as phishing attacks, malware attacks or ransomware, etc.
Recently, a scam targeting users of the famous Coinbase crypto exchange payment gateway has caused a stir in public opinion in the US. The fraudsters hacked the main computer, accessed it remotely and pretended to be support staff to withdraw money from customers’ accounts and stole over 20 million USD in cash.
4. Legal risks
Although many countries have issued laws and legal frameworks on cryptocurrencies such as BitLicense, MiCA, SFA, etc., the legal framework for cryptocurrencies is still not really clear and popularized by the majority.
In many Asian countries, which are the most dynamic cryptocurrency trading centers in the world, regulations on digital assets are still “in the sky” and not in line with reality. This will pose great risks to users or investors, or give an unfavorable view of cryptocurrencies as an illegal asset. Obviously, countries need to consider and develop specific regulations to ensure safety and protect the rights of related parties.
Only then can providers of wallet services or crypto electronic payment gateways, which are very decent, like us XAIGATE, be more secure in doing business!
READ MORE: 2024 NEW EU RULES: A Grateful Solution for Crypto Payment Gateway Integration Services!
Solutions to escape the trap of crypto exchange payment
1. Learn carefully, stay informed and alert
To avoid risks, you should learn carefully about cryptocurrencies, blockchain technology, potential projects and analyze potential risks before deciding to invest. There are many sources of public opinion in the newspaper, you should read in-depth analysis and market reviews to know the “wind direction”.
Being suspicious is not a bad thing, staying up to date with industry news helps you stay well-adjusted against the ever-evolving risks.
You can follow XAIGATE’s blog because we will be your friend who analyzes the crypto market most sincerely!
2. Find a reliable crypto exchange payment gateway (like XAIGATE!)
Method number 2, find a crypto exchange payment gateway that is really safe to avoid security risks!
Nice to meet you, XAIGATE’s here!
Of course, we do not dare to claim that we are “whales” in the industry, but we dare to affirm that we absolutely support our customers. Our smart contracts and two-factor authentication (2FA) methods significantly reduce the risk of unauthorized access. Not only that, we constantly update our customers with market information, identify scams and are ready to support you online 24/7 if you have any crypto-related questions.
Think of XAIGATE as a safe, we are a safe environment to manage your digital assets and reduce the risk of external threats invading your transactions.
READ MORE: Xmas ’24 Gift? The Best Payment Gateway That Accept Crypto!
3. Protect your accounts, personal devices and home networks
Have you ever thought that the problem is not only in this market “more people but more evil” but the key to solving the problem is how you protect yourself?
First of all, use strong and unique passwords for all your accounts! You can change them a little, if you have the ability to remember. For example, if your Facebook password is “XAIGATEcoin1“, then your Linkedin login password should be “XAIGATEcoin1@“, the password for X can be “XAIGATEcoin1ß“. Note: Don’t write down passwords in your phone notes, write them down on paper and put them in your physical wallet!
Second, make sure you improve the security of your personal devices and the networks you use. It’s easy, I’ll show you how: learn about and use browser security extensions. Always verify the legitimacy of a website before entering sensitive information and downloading suspicious files! Make sure your Wi-Fi is protected with a strong password and encryption enabled to prevent unauthorized access.
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The above solutions are too easy to implement, right guys? The 4 risks I mentioned are common risks related to crypto, but there are still many, many potential risks in this field that you still have to learn and accumulate more about, okay?
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