It’s been a long time since cryptocurrencies are considered to be the future of the financial and economical sector. But there are many challenges and issues cryptocurrency has to overcome to lead a smooth and successful journey. Let’s discuss them in detail.
The lack of security is one of the major issues that the crypto market faces. As breaches and hacking were more common, users started demanding more protection and security for their data and assets. With the advancement of technologies, hackers have also become sophisticated. As exchanges centralize the risk, they are more vulnerable to hacking. There more decentralization can be a good solution that can provide maximum security.
Many of the ICOs are unsuccessful and that is a wide known fact. Some of them even turned out to be fraudulent. Most of the expensive crypto projects claim to be decentralized, but many of the recent studies proved that among the 50 top-rated crypto coins, 80% are held by 20 popular wallets. The studies even brought out the fact that these 20 wallets hold the majority of the token supply. Lack of professionalism, authenticity, and transparency from the major institutions are restricting cryptocurrencies and blockchain from wide acceptance among the public.
Even though investors were attracted by the initial coin offerings, many of them turned out to be scams and traps. Exchanges must make sure of the reliability of the crypto coins before listing them. You can also decide to use reputable trading bots available out there. If you prefer choosing trading bots like the bitcoin revolution, you can run the bitcoin revolution test and verify the credibility of the site before getting involved with the platform directly. They have to strictly supervise the process of assessment too.
While some exchanges go for a single flat fee, some others split the fee as the taker fee and maker fee. Sometimes, the maker fees surpass the taker fee if the maker adds volatility to the market. In such cases, the trader gets a reward from the exchange.
Lack of legislation
Most of the authorities do not have the right to handle these digital currencies. Therefore no legislation provides user protection, which is a huge challenge for cryptocurrencies and blockchain technology. Educating people about keeping their assets and data safe can be a good solution to this issue.
While the crypto market is flourishing every day, the problem of a bad image for the market is still prevalent. People associate the terms of the crypto market with cringe advertisements, instant money-making schemes, low-quality campaigns, and even fraudulent activities and scams. Many people find cryptocurrency to be a new method of the traditional scams that trap people and loot them. Until people get good knowledge about the market, this general concept will hinder the growth of cryptocurrency.
Even though it has been more than a decade since bitcoin has been introduced, buying and selling cryptocurrency is as hard as it was in the beginning. General people find it very difficult to even enter the crypto market because of the complex validation it requires. The security procedures of the crypto market are also troublesome for people to use the coins as a medium of exchange. The industry has to come up with a user-friendly process to buy, sell and store the crypto assets to ensure more public participation.