Cryptocurrencies have exploded in popularity over the last decade, and almost everyone is talking about them or investing in them. However, cryptocurrency investments are unlike any other in the financial system. They defy conventional investment trends and are prone to ludicrous swings.
There are over 10,000 cryptocurrencies and a slew of cryptocurrency exchanges, with more being added daily. That's a lot to take in, especially for first-time investors. This article will go over the biggest risks that new and experienced investors should be aware of in this wildly volatile market.
The 9 Biggest Risks for Crypto Investors
Unlike physical money (or fiat), cryptocurrencies are not backed by banks or governments and are highly speculative. Cryptocurrency transactions exist as digital entries on a blockchain. Cryptocurrencies are a trustworthy and secure system because of the public ledger system.
While the blockchain may aid crypto security, the decentralized nature of cryptocurrency, combined with the anonymity it provides, poses risks. The following are nine significant risks associated with investing in cryptocurrency:
Continue reading: https://www.makeuseof.com/biggest-risks-crypto-investors/
There are over 10,000 cryptocurrencies and a slew of cryptocurrency exchanges, with more being added daily. That's a lot to take in, especially for first-time investors. This article will go over the biggest risks that new and experienced investors should be aware of in this wildly volatile market.
The 9 Biggest Risks for Crypto Investors
Unlike physical money (or fiat), cryptocurrencies are not backed by banks or governments and are highly speculative. Cryptocurrency transactions exist as digital entries on a blockchain. Cryptocurrencies are a trustworthy and secure system because of the public ledger system.
While the blockchain may aid crypto security, the decentralized nature of cryptocurrency, combined with the anonymity it provides, poses risks. The following are nine significant risks associated with investing in cryptocurrency:
Continue reading: https://www.makeuseof.com/biggest-risks-crypto-investors/
