12Trader Review - good to trade with or a total scam?
General Features, Location and Regulation
Reviewed Broker: 12Trader
Established in: 2015
Supported Languages: English, Arabic
Instruments: Forex, Commodities, CFDs, Cryptocurrency
Trade Cryptocurrency with 12 Trader
Cryptocurrencies are the hot thing nowadays, and it doesn’t take much to understand why. In an ever-changing market the cryptocurrency is a game-changer, and as traders our job is to take advantage of this new exciting opportunity.
The Pros and Cons of cryptocurrencies
- Bitcoin and other cryptocurrencies stand alone, means they are not tied to bank or other financial institution nor influenced by such. No financial institution or government can affect its value.
- There is final limit to the number of bitcoins: unlike other resources, bitcoins value is not affected by demand: means it will not increase as more users join the network. There are steps being taken to prevent inflation and to keep the total number of bitcoins in circulation to 21 million at most. There is a fix rate in which bitcoins are created. from this scarceness the bitcoin draws its continuing value, which makes it an easy payment method.
- Because of the distributed nature of the bitcoin trading system, the risk of hacks decreases. While it’s harder to hack into the system because users can remain anonymous and the system is not centralized, it is not impossible, and there has been hack in the past.
- Cryptocurrencies are secure. Strong cryptography and the fact that only the key owner can send cryptocurrency makes breaking the system incredibly hard.
- Ad mentioned above, the cryptocurrencies are not immune to hacks. There were two big scandals in 2015 and 2016 which cost a significant loses of millions of won.
- Cryptocurrencies are innately volatile, and lacking legal institutions protection. The fluctuations the bitcoin is subject to are less predictable than government-backed currency.
- Because cryptocurrencies are relatively new and the market is changing in a rapid pace, it can be hard to predict what the future holds: will governments eventually limit the cryptocurrencies? Will there be other systems which will bypass it?