Why You Should Be Careful when Trading Bitcoin

For the past few months, the price of Bitcoin has sky-rocketed. However, this has not prevented the currency from making its way to the mainstream society. One of the...

For the past few months, the price of Bitcoin has sky-rocketed. However, this has not prevented the currency from making its way to the mainstream society. One of the companies helping Bitcoin become acceptable is Square. For starters, this is a payment company that’s also growing very fast. The company is owned by Jack Dorsey who is a co-founder at Twitter. Through the company, he is on a mission of selling the virtual currency to ordinary people in the society. He is not alone in this. Another company from Chicago known as Chicago Mercantile Exchange has announced that it will start offering the virtual currency on its platform. For those interested in knowing the price of the fast-growing virtual currency, they will have to view the prices at unregulated exchanges that are located across the globe. At the same time, the exchanges usually pass unnoticed by laws in Europe and America. One of the biggest exchanges at the moment is Bitfinex. Nonetheless, it’s virtually impossible to learn the people behind its operation as it does not provide any on its website. However, this is a legitimate company as it has been incorporated officially at a small island known as the British Virgin Islands.

However, things have been quite complicated for the company as it has been fined on a number of occasions by the US government. At the same time, the company has been banned by American banks for various reasons. This comes after it was confirmed that the company had lost customer money to hacking. The hackings have been carried out in two separate attacks. This, on the other hand, has prompted critics to question whether the company has the cash it claims it has. Bitfinex suffered another blow yesterday when Tether announced that it had been hacked. During the hack, the alternative virtual currency said that it had lost close to $30 million in the form of digital tokens. Nonetheless, none of these attacks is enough to prevent ambitious investors and customers from spending billions of dollars with the same company. To make things interesting, the spending has taken place in the last few weeks. These are trades that have even affected the US dollar in one way or the other. However, there are concerns from all sides about the booming trading as well as the loose controls. These are concerns that have been raised by people who believe in the trade itself. Jan Ludovicus van der Velde is the chief executive of Bitfinex. He told investors not to worry yesterday.

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BitcoinDigital MoneyTrading Bitcoin

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