The Crypto industry is booming right now.
In the last few years, along with institutional investors, a group of common people also have started to invest in the Crypto market.
In case you are also thinking about putting your money into the Crypto space, you need to have a proper understanding of the Crypto market. When you have your concept about the Crypto market clear, you will be able to make better investment decisions.
For Crypto investments, first, you need to choose a secure Crypto trading platform like Quantumai. And in order to ensure that you are driving your investment portfolio in the right way, you must know the problems of the Crypto industry.
Major Crypto Industry Problems
Now, we will look at the major Crypto industry problems. Having an insight into all these issues will always help you in making rational Crypto investment decisions.
1. Crypto Exchanges Are Getting Hacked
If you are familiar with the Crypto space and keep yourself updated with the latest news, you must know that the Crypto exchange hacks are continuing. This is making one thing really clear, and that is exchanges are fallible.
How To Overcome
The only way to solve it is to opt for more secure exchanges. If you want your Cryptocurrencies to be safe, you have to opt for any of the most secure exchanges and platforms like Quantumai. Some exchanges try to hack themselves just to enhance their security.
2. An Imbalance Between Privacy And Safety
Bitcoin, the most popular Cryptocurrency, was introduced by a pseudonymous inventor. However, since that time, KYC or know-your-customer protocol has been integrated almost everywhere.
This handing over personal and private data to exchanges and some other similar companies always poses a risk of combining all that data with public Blockchain information.
How To Overcome
The most effective and convenient way to use Cryptocurrencies without revealing your intimate details is using privacy coins. Coins like Zcash and Monero make it harder for anyone to access where you are spending your money.
3. Crypto Companies Can Not Get Bank Accounts
We know, just like us, you were also shocked when you got to know that Bitfinex has a $750 million black hole in its own finances. It also turns out that the bank holding up the fund of Tether was a more integral part of the Crypto industry than most of us know.
Most traditional banks always refrain from working with companies that somehow handle Cryptocurrencies. It means the Crypto businesses have really fewer options.
How To Overcome
We can expect this scenario to change really soon. In the United Kingdom, Coinfloor has just started providing fiat bank accounts to Crypto companies. Although this service is geographically limited, it can work as a stimulant for other businesses in order to offer similar offerings.
4. Price Manipulation Is Rampant
If we compare Bitcoin with more established assets, it is a relatively small asset class. All those high-net-worth investors can easily manipulate it. They are called whales.
The stable coin Tether, which is operated by the same business entity that controls Crypto exchange Bitfinex has been accused several times of manipulating the market.
How To Overcome
By cleaning up the amount of all those fake trading volumes in the market, one will get a better picture of what is really going on would be a good start. Cleaner regulations will always benefit the Crypto market so that all the larger players feel more confident while trading Cryptocurrencies.
5. Institutions Are Not Using Public Blockchain
You know right that JP Morgan has announced JPM Coin, which is a U.S. dollar-backed stable coin?
Apart from that, Facebook has also declared its planning on launching a stable coin. All these are based on a private blockchain.
Private Blockchain is nothing but permission networks that are used for anything like passing KYC documents to supply chains. Not all people can access it, and also they do not integrate with other public Blockchains, like Ethereum and Bitcoin.
How To Overcome
There are also some institutions or organizations that are also using public Blockchain and also can be integrated with the most popular Crypto Coins like Ethereum and Blockchain. So, basically, if the institutions are not doing it, we need to do it ourselves and choose all those solutions with public Blockchain.
