How Do Cryptocurrency And Other Stocks Can be Compare || What Problems Are Face by Investors
bitcoins and other stocks can not be trade without money . That has made crypto exchanges a difficult , challenging and sometimes problematic element of the rapidly emerging world of digital currencies. In the beginning the look just like any other stock marketing, matching buyers with sellers and publishing prices. Yet in many ways they differ vastly, potentially exposing investors to risks they may not fully appreciate
cryptocurrency and other share a key function, as places to trade assets, but the similarity ends there. Crypto exchanges both hold an investor’s assets and charge brokerage commissions, functions that are normally segregated in the world of stocks. That helps to make many exchanges highly lucrative, as do the fact the fees they charge are fatter than traditional bourses’. For example, Japan’s second-biggest crypto venue, Coincheck was almost as profitable in 2017 as Japan Exchange Group, operator of the nation’s biggest stocks and derivatives markets. Another crucial difference: While stock markets are tightly regulated, their digital-asset counterparts so far have very little, if any, supervision in most jurisdictions
The biggest potential danger for an investor is losing an entire investment, whether through theft by hackers from the exchange holding the assets or by the course going out of business. Among the most recent cyberthefts, Coincheck had nearly $500 million in digital tokens stolen in January and South Korean exchange Coinrail said in June there had been a cyber intrusion in its system. Half a dozen or more of the largest exchanges have failed since mid-2014, some following a hack others after being shut down by the authorities.
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source :- https://www.bloomberg.com/news/articles/2018-05-07/new-crypto-exchanges-don-t-want-to-hold-your-money-quicktake
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