Topic: The risk of investing in cryptocurrency (Read 420 times)

You've already said it the bigger you invest the bigger your profit/lose would be.
The only difference is in crypto we could always make our own way to cut lose and to earn more if we know how to trade.
Don't rely on investment schemes,Fake mining ,Pyramid schemes doubler or any kinds of investment in the internet,Learn to make your own money grow.

The biggest risk are emotions and lack of knowledge. The lack of knowledge could lead to things such as believing that a shit coin is going to be big. And emotions can cause you to panic, whether buy or sell.

Tha's a clever decision, investing in Crypto now is like investing in the domain names's boom in 2000, as long as we are responsible and e only invest the amount we are willing to risk or lose if that occurs.

Of course it's risky. Who isn't ready to take chances stays away from this kind of investments. It's all a matter of your mindset. If you want to win, be ready to lose. And don't invest everything you own, too!

Hello,
it exist a risk to invest in cryptocurrency but the risk is real for all currency (fiat or crypto). The BEST solution is already invest what you can lose (the worst result). With all types of crypto currency, it's very difficult to knows the future for all. The most crypto lose but when it's grow up it's exponential.
If the project is good for you with all verifications (team, project, budget, ...). You will earn more with altcoins but have a good feeling !!!
#relictum.pro #relictumpro #relictcoin

This have been said many times on this forum already, cryptocurrency investment is a high risk investment plan, you have to be ready for any possible out come, to get the best result you have to be willing to learn and the most important part is investing what you can afford to lose

We have many impatient investors that are too afraid of everything, the real truth about crypto is there is always time to make profit, you only lose when you sell at a loss, there are opportunities in every corners of crypto space, just don't put your eggs in a basket and use diversification instead

if its an open source project - it should not be an issue to do a deep review. i noticed that majority of the scene not paying attention to what should be the very basics. most of the topic reddit is about the market. but source code is what developing the market/price at the first place, then you have the community utilizing that code. and if first two are doing okay - traders finalizing the chain of basic project flow. they say market trends and etc - i see release cycle. as an example - upcoming stuff like taproot and more. another good example - ltc price and their ln deployment. not really following, but eth is still something because they riding hip PoS wave  so by just researching a little around the code you can minimize your risks dramatically. did i missed anything?

Well, I realize the risk and I am ready to take it. I never use the money needed to cover bills or to pay for my child’s education, but I invest in crypto permanently.

It might be a matter of time for bitcoin to reach another all-time high, we have seen passed 2 years after the last all-time high December 2017.  The halving is coming and that event can trigger another move in high price!

Investing in all assets has some degree of risk one way or another, but cryptocurrency specially altcoins for instance has just more risks than a stock that is for a known reputable company.

It's all mainly because cryptocurrency market as whole still has a long way to go to get the liquidity that is needed to become less risky, if the day comes that the crypto gains the same marketcap as gold market for example crypto investments could be way less riskier.

If you split your whole investment Portfolio into 3 different catagories, namely : Low Risk / Medium Risk / High Risk, then Bitcoin would have to go under Medium Risk and Alt coins should go under High Risk.

You know, when you go out and you bet on gambling, you set aside a bunch of money for your entertainment and you accept that there are a high probability that you might lose it all, but you manage that risk, by doing some research and then finding the site with the lowest house edge and gamble that money there, with a higher probability that you might lose less.

Doing some research will help you to time your Bitcoin trades by buying at the correct price point and buying "low" and then selling "high", reducing your risk on investments in Bitcoin.  

Though we are approaching an era of innovating technology, it is still possible that the crypto itself is a risk. How? Remember that the only thing that runs the cryptoccurency is the internet and its cloud. There are a lot of recent news of a possibility of having war (though had been on cooldown, we never know.), there are percentage that holds the possibility the whole wide internet would've been affected. And investing most or even a part of your money in it is like sending your money to the moon and only had access with it through mobile apps, in which the mobile apps is the internet and moon is the cloud, and without any of it, not a single penny would comeback onto your investments.

As well one should consider one important thing - some cryptocurrencies had been invented as a mere tool, not a speculative investment. Therefore you might buy some very promising crypto at $100 level, but it would turn out it is doing fine with its blockchain and meeting its goals when its price is relatively stable at $30s.

Of course, if we are speaking about risk and profit ratio - pump and dump schemes are a good example of that. Depending on the moment you enter such scheme, you may make a few hundred percents of the investment, or spend money for a worthless token. Btw. P&D is banned on stocks for a long time by now, but not on cryptocurrencies.

Every investment involves risk so it depends on the person how much risk he/she can accept. I agree with what others had said above that if you sell at a loss then you can only blame yourself since it is you who sold it at a loss, it is better to wait patiently and believe in what cryptocurrency you bought. But if you bought a coin that you think is only going down every time then it is good to decide to let go.

The risk in crypto currency is still quite minimal, it may take more effect on greedy,less patient  and less sensitive people.
You need to study crypto currency very well read and browse as much as possible. Those who went ponzi of crypto currency with trading companies will face more risk if they are too greedy. They will keep promising their investors even when they could do nothing to the market price.

BTC will always rise. Its been proven since time so if you are not going to sell that means your BTC stays as is but value can be more than the previous years. That's less risk. Unlike with USD in forex, it will just be what is it unless you trade successfully to a pair.  You'd have to do the work to profit and if you are not that god in reading those indicators, the riskier it can be.

There is possibility that Bitcoin price will never come back that high, so yes, it's possible but highly unlikely that your money is lost forever.

Sure, Forex isn't easy for novices, but still, fiat-based currencies are a lot easier to predict than crypto, while still being a lot harder than predicting stocks.

There is a risk with investing in everything.

The risk with investing in cryptocurrency is that it is a relatively new
technology with a high percentage of owners speculating on its performance.

It has proven to be volatile in the past with Bitcoins biggest crash in 2017 - 2018.

It is known that there are many factors and events which have and will continue
to cause market fluctuations thus affecting the value of Bitcoin.

History

    December 17, 2017: Bitcoin's price briefly reaches its all time high of $19,783.06.

    December 22, 2017, Bitcoin fell below $11,000, a fall of 45% from its peak.

    January 12, 2018, Amidst rumors that South Korea could be preparing to ban trading in cryptocurrency, the price of bitcoin depreciated by 12 percent.

    January 16, 2018: Bitconnect announced it would shut down its cryptocurrency exchange and lending operation after regulators from Texas and North Carolina
    issued a cease and desist order against it as it was suspected of being fraudulent. Bitconnect loses 92 percent of its value within days.

    January 26, 2018, Coincheck, Japan's largest cryptocurrency OTC market, was hacked. 530 million US dollars of the NEM were stolen by the hacker, and the loss
    was the largest ever by an incident of theft, which caused Coincheck to indefinitely suspend trading.

    From 26 January to 6 February, the price of Bitcoin halved, and reached 6,000 US dollars.[citation needed] Additional negative news for the cryptocurrency market
    continued in the first quarter of 2018. The price remained low though the level slightly recovered in the first quarter of 2018.

    March 7, 2018, Compromised Binance API keys were used to execute irregular trades.

    Late March 2018, Facebook, Google, and Twitter banned advertisements for initial coin offerings (ICO) and token sales.

    November 15, 2018, Bitcoin's market capitalization fell below $100 billion for the first time since October 2017 and the price of Bitcoin fell to $5,500.

https://en.wikipedia.org/wiki/2018_cryptocurrency_crash