The Wild West is a term used to describe the western United States during the latter half of the 19th century. The period was marked by lawlessness, with many people taking advantage of the absence of a strong government presence. A lot like crypto.
Crypto is risky because it’s not only new, but also still largely unregulated. Countries continue to waffle on how they want to treat Bitcoin and other currencies, which sends prices up and down in response. And then there’s all those hacks that keep happening – the latest being Coincheck, where hackers stole $400 million worth of NEM coins.
But crypto is also exciting! Prices are soaring, and at least one new crypto millionaire is minted every day this year (many more than that, actually). And we’re just at the beginning stages of what could be a revolution in money as we know it. So how do you get involved?
You can buy coins directly through exchanges like Coinbase or CEX.io, or you can buy stocks in companies that are involved with crypto such as AMD or NVIDIA. I think buying stocks is the safer option for people just starting out since you don’t have to worry about keeping coins safe from hackers, nor do you need to know much about crypto at
The lack of regulation and structure in the cryptocurrency market has led to a wild west for investors. No one knows what will happen next, but for sure there will be both risks and rewards.
It’s important to remember that cryptocurrency is a relatively new investment class. We only have the last decade of historical data to look at, and that doesn’t give us much to go off of. The traditional stock market has been around for hundreds of years, and we can look back decades and centuries to see how it has performed over time. But crypto is still an infant in comparison.
Because cryptocurrencies are so young, they are subject to extreme volatility, both up and down. In 2017, Bitcoin had one of its best years ever, skyrocketing from $1000 to $20K per coin in just 12 months. While this was great news for those who bought at $1000 and sold at $20K, it was not so great for those who bought at $19K just before the bubble burst in 2018.
Crypto has become a roller coaster ride with no end in sight, but it’s still too early to know if we are in a bull or bear market – or if we are somewhere in between.
Regulation is also lacking for this relatively new investment
It’s not hard to see why crypto currency stocks are so attractive to investors. The crypto market is a relatively new and unexplored space, but one that has shown incredible potential over the past two years. The rapid rise of Bitcoin has established a substantial market for alternative coin products, which in turn has created a new investment opportunity.
Unfortunately, this also means that the crypto market is rife with risk. Since crypto is still in its infancy, no one really knows how it will perform in the future. Many investors have been burned by betting on the wrong altcoin or ICO, and there have been countless scams perpetrated by con artists seeking to prey on those hoping to get rich quick.
In this article, we’ll take a look at some of the risks associated with buying into crypto currency stocks – and how you can avoid them.
Investing in crypto is an exciting, yet risky adventure. The opportunities are great, but so are the potential losses if you don’t know what you are doing. We’re here to help you make the right investment decisions.
Learn how to invest in crypto and find out what experts think will happen to Bitcoin over the next few years. Read our favorite investing books that will teach you how to invest in crypto like a pro, even if you have no idea where to start!
What is a crypto currency?
Cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies are a kind of alternative currency and digital currency (of which virtual currency is a subset).
What are the risks involved in investing in crypto-currency?
While Bitcoin may have been the first widely known cryptocurrency – it certainly isn’t the only one. Bitcoin has inspired other cryptocurrencies to be even more ambitious than its creators could have imagined. The most notable of these, Ethereum, launched in 2015 and immediately soared to popularity; surpassing Bitcoin in market cap within three years.
Which crypto currencies are available for trading?
Bitcoin has now been around for over eight years. And during that time, it’s raged from being worth about $1 USD all the way up to nearly $20,000 USD per coin at its height. While there has been some volatility along the way, it’s also proven relatively stable over time when compared with many other investments. This makes it an excellent option for investors looking for long-term investment opportunities. But what about short-term opportunities? If you’re looking to make some money quickly, then buying
Cryptocurrency is a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not necessarily tied to any other form of currency.
The value of a cryptocurrency is determined by the marketplace. In other words, it isn’t a “real” currency in the sense that there are set values for coins or notes. Instead, the value fluctuates based on supply and demand.
Any cryptocurrency is going to be volatile compared to more established currencies and assets. This volatility can make them highly speculative investments. One feature that may help mitigate this risk is diversification.
There’s also the risk that governments will try to regulate the currencies in ways that could affect the value of your crypto holdings. For example, regulating the exchanges on which cryptocurrencies are traded could cause some to lose value or even become worthless overnight. There’s also no guarantee that cryptocurrencies will endure into the future or maintain their value.
Like the internet in the 1990s, cryptocurrencies are still in their infancy. It’s easy to imagine that a decade from now, every major bank, broker, and money-services company will integrate bitcoin and other blockchain tech into their offerings. At that point, it’s possible that bitcoin could become a widely used currency for international trade.
These days, bitcoin is best described as an investment or speculative vehicle. Investors can purchase bitcoins through online exchanges. A small number of merchants accept them as payment, but only a tiny fraction of all businesses do so. The relative anonymity afforded by using the currency has made it a popular way to make illegal purchases online.
In recent years, venture capitalists have made significant amounts of money investing in bitcoin-related companies—sometimes buying into projects even before they’ve launched or produced any revenue—and then watching those companies’ valuations soar.
There are also other cryptocurrencies looking to become more widely accepted and valuable than bitcoin. One such coin is Ethereum, which launched in 2015 with backing from several large venture capital funds. Ethereum has gone on to become the second largest cryptocoin in terms of market value (or “market cap”) after bitcoin.