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What is cryptocurrency trading like (Is trading digital currency a pyramid scheme)?

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What is cryptocurrency trading like? According to reports, in the first half of

What is cryptocurrency trading like (Is trading digital currency a pyramid scheme)?

What is cryptocurrency trading like? According to reports, in the first half of 2018, the price of Bitcoin once exceeded $20,000. Meanwhile, the price of digital currencies has already reached a historical high of over $30,000, but this is just the beginning. With the development of the market, cryptocurrency trading is becoming increasingly popular, and some investors are very optimistic about the prospects of this asset. Analysis has pointed out that cryptocurrency is an emerging investment tool with high instability, investment thresholds, and risk exposure. For ordinary investors, it is important to pay attention to their own profitability and whether they need to invest more energy.

Is trading digital currency a pyramid scheme?

According to Sina Finance, in recent times, some media have reported that digital currency trading platforms are preparing for ICOs. The exchange began recruiting users to join and launched its own blockchain application “BTT” in November of last year. According to relevant announcements, the project team stated that they would provide tokens including Bitcoin, Ethereum, Litecoin, and others to their investors.

Regarding such pyramid schemes, the regulatory authorities’ attitude is: do not easily believe in so-called investment opportunities, “stock trading” does not fall into the category of pyramid schemes. If virtual currency is considered a pyramid scheme, why is it referred to as a scam?

1. “The concept and economic model of virtual currency is completely different from traditional pyramid schemes.” Currently, China’s legal community has not yet recognized these claims. In fact, there have been some pyramid organizations in China that have conducted business by issuing so-called “virtual currency,” “encrypted assets,” “digital currency,” “contract-based finance,” and so on. On October 22, 2017, the Industrial and Commercial Bank of China issued the “Notice on Preventing Token Financing Risks,” explicitly requiring financial institutions not to engage in any form of token issuance financing activities. Notice No. 4 in 2018 stated: “In mid-September 2018, the Business Management Department of the People’s Bank of China issued the ‘Announcement on Preventing Token Financing Risks’.” (Finance Network)

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