Many friends who trade on the blockchain tend to get nervous when asked questions like "Virtual currency lacks legal protection," and may even feel they've fallen into a trap. Actually, there's a common misconception here, and today we'll clarify this thoroughly.

The core point is this: trading virtual currencies is not protected by law, but that is completely separate from whether the act of trading itself is legal or illegal. Many people confuse these two concepts, which ends up scaring themselves unnecessarily. When we say "not protected," it simply means that virtual currencies are not legal tender. If you voluntarily trade with someone, no one actively intervenes. The problem arises if you get scammed or if scammers transfer virtual currencies via transactions—law enforcement can't help you recover assets or force the other party to compensate. That is the true meaning of "not protected."

So, what's the smartest way to respond when faced with such issues in practice? Don't deny or argue; just say, "I understand, virtual currency trading carries risks. I am aware of this, and all my transactions are voluntary, with the risks borne by me." This one sentence clearly shows your understanding of the rules, avoids potential trap questions, and leaves an impression of being clear-headed and knowledgeable.

Never say things like "I don't know it's unprotected" or argue "then why don't the authorities deal with scammers," as that only creates unnecessary trouble. The key to being a smart virtual currency trader is having a clear awareness of the risks.