On Friday Bitcoin and other cryptocurrencies suffered a blow after prosecutors in South Korea raided the offices of one the biggest cryptocurrency exchanges, Upbit on suspicion of fraud.
Digital Currencies Prices Tumble
On the Bitfinex exchange, Bitcoin fell to $8,602.20 losing 7.90 percent in 24 hours. For the week, it has lost 12.7 percent by market capitalization.
Ethereum, the world’s number 2 cryptocurrency by market capitalization, shed 10.2 percent to $682.54, with a weekly loss of 16.7 percent.
Ripple plunged 13.2 percent to $0.69200, a weekly decline of 23.5 percent.
While Bitcoin Cash tumbled 13.7 percent to $1,419.00, with a fall of 19.5 percent for the week.
Suspected of Fraud
According to news reports, prosecutors in Seoul conducted a search of the head office in the Gangnam-gu-district of UPbit Exchange on May 10-11, on suspicion of fraud and selling cryptocurrencies to customers that it did not actually hold.
The prosecutor’s office said that they had secured hard disks and accounting books which would be analysed over the next couple of days.
Concerns that the worldwide regulatory scrutiny may dampen enthusiasm for digital assets; is hurting cryptocurrencies.
Luckily, that’s why when trading with a regulated CFDs broker such as eToro, traders and investors are protected from fraud.
Why does this matter?
Tradition, authorisation and reputation matters when protecting your investments.
Compared to Exchanges Exchanges who are mostly unregulated, and require complicated sign sign-ups and registration procedures with time consuming downloads and a potential likelihood of hacking.
So what’s the better alternative?
Trustworthy CFD brokers such as eToro can give traders peace of mind.
If you think about it…
Just consider the recent news report when in March, another exchange, CoinNest the fifth largest exchange in Korea was raided on suspicion of siphoning off funds from customer’s accounts.
Plus, over the last year exchanges around the world have been the victims of successful and attempted hacking attacks.
Compelling Reasons to Trade
So honestly, if you are looking for a fast and simple way to trade assets and cryptocurrencies safely (and have your back covered), CFDs service providers like eToro offer traders some compelling reasons to trade with them.
With most assets being traded as CFDs (or contract with a difference) at eToro, traders have discovered the most popular way to trade stocks, indices, commodities; and cryptocurrencies online.
A CFD is an agreement between the trader and the broker where each pay the difference between the prices of an asset when the contract is made. The contract is terminated when the trade is closed.