Entering the “cryptocurrency world”? Please be cautious

Is “coin speculation” really the best way to get rich? The answer is obviously no.

Entering the "cryptocurrency world"? Please be cautious

Since the birth of Bitcoin, the fever of the “cryptocurrency world” has continued to grow. Recently, with “dog coin”, “Shiba Inu coin” and other celebrity-backed virtual coins becoming popular all over the world, the sound of “speculation” is all over the streets and lanes. It seems to many people that it is not difficult to obtain great wealth by “coin speculation”.

However, is this really the case? Is “coin speculation” really the best way to get rich? The answer is obviously no.

Recently, China Internet Finance Association, China Banking Association and China Payment Clearing Association jointly issued an announcement to prevent the risk of speculation in virtual currency trading, clearly stating that member institutions shall not carry out virtual currency trading exchange and other financial services; resolutely resist illegal financial activities related to virtual currency, and do not provide account and payment clearing, publicity and display services for virtual currency trading.

At the same time, the announcement prompted the public to participate in the risk of virtual currency investment speculation, clarified the basic characteristics of virtual currencies such as bitcoin is not issued by the monetary authorities, does not have the monetary properties of legal compensation and compulsory, is not a real currency, can not and should not be used as money in circulation in the market.

From the above-mentioned authoritative information, it can be seen that the business activities related to virtual currency are illegal in China. For ordinary people, joining the “cryptocurrency circle” and speculating on virtual coins that do not have a solid foundation, there is a huge risk that they will lose their money.

Therefore, even though it is difficult for people to remain completely rational in front of huge interests, we would like to remind that there are huge risks in joining the “cryptocurrency circle” and we must be cautious.

In China, virtual currency investment is not protected by law, this is very clear.

China currently explicitly prohibits any virtual currency-related business activities, and any act of engaging in token issuance and financing is illegal, and no trading platform is allowed to engage in the exchange business between legal tender and tokens or “virtual currency”; no trading or acting as a central counterparty to buy and sell tokens or “virtual currency”; no trading for tokens or “virtual currency”; and no trading for tokens or “virtual currency”. No trading platform shall engage in the exchange business between legal tender, tokens and virtual currencies; shall not buy, sell or act as a central counterparty to buy and sell tokens or virtual currencies; shall not provide pricing and information intermediary services for tokens or virtual currencies. Financial institutions and non-bank payment institutions shall not directly or indirectly provide products or services such as account opening, registration, trading, clearing and settlement for token issuance and financing and “virtual currency”; shall not underwrite insurance business related to tokens and “virtual currency” or transfer Tokens and “virtual currencies” are included in the scope of insurance liability.

These clear rules and regulations clearly tell us that speculation on virtual currency is not protected by law, and if you suffer losses, it is difficult to get legal support for your claims.

In addition to the laws and regulations, the endless scams and examples of “leek-cutting” can show people the risks and unreliability of speculating in virtual coins.

“The police have taken stock of the common ways to speculate on virtual coins, including fake trading platforms, capital markets, Ponzi schemes, and proxy investment scams, which have different packaging, but in essence, they all take advantage of investors’ mindset of getting rich overnight, and take advantage of newcomers’ eagerness to invest and lack of access, to play information gap and cheat investors. The most common ponzi schemes are

The most common Ponzi scheme, for example, is characterized by the promise of high returns in the short term, and operates by taking the money of later investors as a return to earlier investors, playing the game of “pass the buck”, with the predictable end.

According to the media investigation, digital asset trading platform is full of chaos, some platforms specialize in harvesting the lack of information, weak vigilance of the elderly, using pyramid schemes to pit people into the game; some platforms create a “single teacher” “investment experts” persona, to attract investors The “bait”, first to impose a small profit, and finally run away. The news of investors of different ages in different regions being cheated happens from time to time, as little as a few thousand dollars, and as much as tens or millions of dollars.

The country’s clear laws and regulations, as well as all kinds of real cases, are always reminding ordinary investors that the water in the “coin circle” is deep and extremely risky, so it is important to be cautious when entering the circle.

Since 2013, China’s financial management department has issued several announcements to alert the risks of speculating in virtual coins and strengthen the supervision of the “coin circle”. Stricter regulation is bound to better protect the safety of investors’ funds and prevent related financial risks.

In the face of people’s increasing investment enthusiasm and the lure of “one day in the cryptocurrency world, ten years on earth”, we still have a long way to go to strengthen investor education, establish a pragmatic and non-flashy investment culture, and abandon the illusion of “overnight riches”.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/entering-the-cryptocurrency-world-please-be-cautious/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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