Trading Hubz

If you are a newbie to crypto,have you wonder why does a(most of the) CEX/s needs KYC when you create an account on their platform? Even most of us crypto traders/investors don't know the reason. But we all should know the reason behind this.

Well, there are several factors that you may consider as to why most crypto exchanges require KYC when creating an account on their platform.

Some of them are,

Security: One of the main purpose of KYC is Security. Exchanges store sensitive user information, including personal data and financial details. KYC helps to secure environment by reducing the chances of unauthorized access or hacking incidents.

Regulatory: Another reason is the need for exchanges to comply with anti-money laundering and counter-terrorism financing regulations imposed by governments. Actually this is the reason why most exchanges implement must KYC rule for users.

Mitigation of Risk: Actually there are a lot of risk managing a crypto exchange. There are chances of fraud, identity theft, and other illegal activities. That is why most of the exchanges implement KYC for the users.

There are some others factors for using KYC for a CEX such as User protection, Reputation etc.

Although KYC may seem like an inconvenience for some users but it plays a crucial role in safeguarding the integrity and security of both the exchange and the wider crypto ecosystem. Btw, do you feel comfortable while completing KYC?

Before beginning, let me share about the context why I am posting this. I've been having some interesting conversations with one of my friends about crypto space and it got me thinking about the various ways we introduce our friends to this exciting space. From my perspective, crypto is a fantastic realm with endless possibilities, but it can be overwhelming for newcomers as well. That's where friends come in.

We can make this journey more engaging and less intimidating for them. So, here's my question to you all: How do you approach introducing your friends to cryptocurrencies without diving into the technical details?

Do you have any unique strategies or stories to share about your crypto conversations with friends? I'm not talking about any specific events or promotions; I'm more interested in hearing your personal experiences and insights into making crypto accessible to your friends. Feel free to share your thoughts and ideas. After all, we're all here to learn from each other's experiences and perspectives! Thanks

Why should you not invest in Meme coin If you are newbie in Crypto space?

First of all, every crypto currency is always risky and has potential to grow as well. You should not invest in crypto that you can't afford to lose. But if you are a newbie in Crypto space, you should avoid investing in memecoin for several reasons. Let's discuss about this in details.

1. Meme coins are frequently generated as a joke or for entertainment purposes, with no significant underlying use case. Unlike established cryptocurrencies such as Bitcoin or Ethereum, meme coins typically have no inherent value or utility aside from their meme status.

2. Meme coins are notorious for their high price fluctuation. Prices can rapidly rise and fall, resulting in severe financial losses for unskilled investors who panic sell during downturns.

3. Meme coins are occasionally the target of pump and dump scams, in which a group of people intentionally increase the price of the coin through coordinated purchases, only to sell off their holdings at the inflated price, leaving unsuspecting investors with losses.

4. Some meme coins might have low trading volumes and limited liquidity on exchanges. This can make it challenging to buy or sell your holdings at a desirable price, especially during periods of high volatility.

Although, some memecoins can generate generational wealth for you but there are also more reasons to not invest your money in memecoins, one of the are you cannot research well due to lack of crypto currency analytical knowledge. So, always try to avoid memecoins If you are newbie.

#memecoins #cryptocurrency #pepe