Now its a global trend people are going crazy in buying or investing in cryptocurrencies because of the sudden rise in their prices, But before buying or investing in cryptocurrencies, know reasons why you should not invest in cryptocurrencies.
1.) Extremly volatile
Investing in Cryptocurrencies involves very high risk because their prices have been extremely volatile as it can go really very high or low in just hours and you may end up losing your money really very fast before you think to take back your investment.
2.) Bubble ready to burst
Some experts and global bankers says you should not invest in Cryptocurrencies if you don’t understand and have
warned against investing in these currencies, because their opinion is that these are nothing but bubble’s that
are just ready to burst one day and you will end up losing all of your investments suddenly.
3.) Not under government control
Unlike other investment avenues Cryptocurrencies are not regulated by Govenment entities or banks, which means
“you will not get any legal support” from any government agency / authorities like S.E.B.I.
4.) Tax on Cryptocurrency
Now you will have to pay 30% of your one time gain
In Cryptocurrencies as tax to the government by
Considering them into your income tax.
Biggest hurdle in the path of investment is that it is not Recognised as legal ‘currency’ by any of Indian authorities like RBI (Reserve bank of India).
RBI cautions the users and investors of Cryptocurrencies about the legal and security related risks of these currencies.
6.) Increasing threat of Hacking and Illegal activities
The ever rising potential of online hacking groups which are specially targeting these currencies for instantly getting rich in less time by stealing these currencies and rising complaints that are coming up that drug lords and extortionists are now using these currencies In their illegal activities as well because these transactions are not easily Trackable .