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5 Principle Differences Between Crypto and Fiat

by icosuccess
, 5 Principle Differences Between Crypto and Fiat

Beginners in the crypto space have always speculated the difference between cryptocurrencies and fiat currencies; traditional investment instruments like Forex and stocks and how decentralized crypto markets work. It’s true that the majority of cryptocurrencies are more volatile compared to other assets. In this article we’ll explore the basic differences between crypto and fiat.

High Volatility and Higher Returns

Most crypto exchanges like Bitmex have been accused of insider trading before. This implies that exchange insiders have an unfair advantage over outsiders who don’t have access to critical information like market movements, sell-offs and calls.

In an unregulated market it can seriously hamper and discourage outsiders from trading on the exchange. While stocks and bonds are a regulated market, crypto insiders are using their trading tools and know-how to take advantage of a more volatile crypto market. We all know that insider trading is a federal offense that is punishable with jail time, repatriation of any profits made, severe fines, and the loss of one’s respect and reputation.

In the case of cryptocurrencies, regulations have not yet caught up to the fast-paced adoption and most altcoin founders and exchanges have opened a window of opportunity for crypto traders to take advantage of the volatility.

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