Buying Altcoins: Roadblocks That May Lead to Losses
When choosing to invest in digital assets, or perform trades, being aware of infrastructure risks is important.
Buying into hot trending tokens may come with its array of roadblocks and glitches. At the end of 2017, the major digital assets were easily available for purchase and bugs were smoothed out. With the exception of Bitcoin roadblocks, buying, selling and moving coins was a relatively smooth affair.
But as new digital assets raised demand, and exchanges saw an inflow of new accounts, those roadblocks are starting to lead to losses. The most recent roadblocks include:
1. Problems with Fiat: Bringing fiat funds on board an exchange may take a while. In some cases, a bank transaction itself will linger for 3-5 business days. But users have reported cases of large sums not appearing on exchange balances. As with cryptocurrencies, the best approach is to test the system with a smaller sum, and perform a minimum fund load or purchase before setting out with a larger sum.
2. Exchange Overload: Exchange overload is still happening. The latest round of problems with Kraken has unfolded in the past days, again angering users. Kraken is one of the few European platforms used for cashing out of cryptocurrency in a fully legal way, and any failure in using the platform creates troubles.
3. Token Transfers Lag: With much demand for new tokens, there are a few problems. When a token runs hot, the first service that gives out is ShapeShift, when the hot wallets become depleted. All wallets with built-in exchanges relying on ShapeShift freeze up. At the moment, nearly half of the tokens at ShapeShift are still unavailable. Exchanges like Binance also have increased the withdrawal fees, in the case of TRON (TRX), up to 105 TRX, a more significant sum at the new market price.
While the above glitches may not affect everyone, it is good to keep them in mind before buying up more significant amounts of tokens, while remaining aware of account limitations on purchase and withdrawals.