Hong Kong from above from Stephane Ma on Vimeo.
Recent move to Hong Kong of the Chinese cryptocurrency exchanges, coupled with the surging prices, attracted thousands of new investors, but not all of them have a clear idea of what they are getting into.
After testing the waters with smaller investments, quite a few Hong Kong users have decided to increase their stakes in the leading cryptocurrency, swamping the relatively inexperienced exchanges with orders. For the customers that are used to immediate assistance and pretty much direct access to purchased commodities, the realities of the bitcoin exchanges that are unable to handle the load might be pretty frustrating. Some would have to wait for weeks for their orders to be approved. Given the volatility of the market, it’s clear why some of the customers find these inevitable delays discouraging.
The influx of new investors who scarcely understand the realities of the cryptocurrency market and are simply looking to make a quick profit endangers the budding industry. The risk of collapse, in tis turn, invites more potential regulation from the Securities and Futures Commission (SFC) – hardly a desirable outcome for the local cryptocurrency platforms.
Knowing and accepting the risks associated with the cryptocurrency trading is the crucial part of navigating the current market. And rushing into the scene in hopes to ‘win big’ is more likely to hurt both the investors and the future of the technology in general.
