What are the potential risks of relying on fiat currency in the cryptocurrency market?

1 answers

• Nov 26, 2021 · 3 years ago
  From the perspective of BYDFi, a potential risk of relying on fiat currency in the cryptocurrency market is the limited availability and accessibility of fiat currency. In some countries, it can be challenging to convert cryptocurrencies into fiat currency due to strict regulations or limited banking services. This can create barriers for investors who want to enter or exit the cryptocurrency market, as they may face difficulties in converting their cryptocurrencies into fiat currency. Additionally, the reliance on fiat currency also means that investors are subject to the traditional banking system, which can have its own limitations and risks, such as transaction fees and delays. Therefore, it is important for investors to consider the potential risks and limitations of relying on fiat currency in the cryptocurrency market and explore alternative options to mitigate these risks.
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