Cryptocurrency investors should keep in mind that prices of all goods vary. Price fluctuations, regardless of their nature, impact the value of an investor’s assets at any given time. Assets and goods owned by a person may change their value in both directions over time. This rule still applies when it comes to virtual goods, and in this case - cryptocurrencies.
It should be mentioned that investing in cryptocurrencies comes with an additional risk atypical to all traditional, non-virtual goods, which change their value over time, fiat money included. National currencies are regulated to a certain degree by the government or other decentralized state institutions, while cryptocurrencies base their value on technology and the trust that is given by the traders. Only the free market mechanisms are at play when it comes to the cryptocurrencies’ value, as well as their supply and demand. Cryptocurrencies do not satisfy any needs by themselves. They are a type of payment medium and can be exchanged for goods and services in establishments that accept them as a form of payment. They can be transferred to another person or stored yourself. You can earn or lose money while trading them thanks to the differences of the converter rates as well as the price fluctuations.
Cryptocurrencies are especially vulnerable to fluctuations in the traders’ trust. This trust has a direct impact on the supply and demand of the virtual currencies and by itself, it is a result of economic, political and technological factors.
Taking into consideration the aforementioned aspect of the cryptocurrencies’ functioning, it is advised to carefully consider if this level of investment risk is something that future users can accept.
At the same time, to avoid misunderstandings, we inform users that the Darb Finance platform uses the banking systems only to pay deposits and to withdraw the funds necessary for buying or selling cryptocurrencies at the exchange. The cryptocurrencies are not the subject of transactions in the banking market.