What are the risk involved in cryptocurrency investment?

uptrendfinancialsignal

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The volatility is a very big risk in cryptocurrency investment because the price of cryptocurrencies are subjected to rapid fluctuations and the market is very unpredictable due to high movements. Investors should also be prepared for price swings and they should also know that there's possibility for losses especially in a highly speculative assets.

 

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timewo

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In some cases, government regulation is a problem. The urls of Binance and other exchanges are blocked, so those who receive crypto payment find that they cannot access their funds kept in the exchanges.

 

Suba

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That is why crypto investment is not intended for laymen, but they must have skills, so they can minimize the risk of capital loss. Apart from that, the risk of crypto investment is losing access or private keys and the risk of hacking.

 

nomad

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If you cannot hold you assets for a long time, and if you are under pressure to sell when the market is down, you will lose money. This is the major risk.

 

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Of course in the world of the Crypto currency the investors should expect anything. I think the main risks on the crypto venture is the unpredictable behaviour movement of the crypto currency prices.

 

SHAHID987

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In start I didn't realized but now I am feeling that there are so much risk involved in this field. I purchased some cryptocurrency at certain price and now market is moving down and down. I know it will come up and I will take out my money with profit but the point is my money will stuck there for months.

 

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King Belieal

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The simple risks involved in crypto investments is that it is very risky. With it, nothing is assured.

 

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Stardom22

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I have learned that the volatility on the cryptocurrency makes it to be more profitable in a way.

 

IB D

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• #9

Stardom22 said:

I have learned that the volatility on the cryptocurrency makes it to be more profitable in a way.

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It is true. If the volatility plays into your favour, you would make a profit or otherwise if it goes the other way.

 

cherry123

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The thing is that crypto investments is very risky. With it, with its fluctuations nothing is certain with it

 

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Rubz

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• #11

Some of the risks involved in cryptocurrency Investments are;
- cryptocurrency prices can fluctuate rapidly and unpredictably - there might be difficulty exchanging cryptocurrency for fiat currency
- cryptocurrency are vulnerable to hacking theft and cyber attacks.