Why cryptocurrency is considered a high risk investment

[Niyi Briggs]

Cryptocurrency is considered a high-risk investment due to its volatility, lack of regulation and oversight, and potential for hacking or fraud.

Additionally, the underlying technology and infrastructure is still relatively new and untested, adding to the overall risk.

 

[Magnus2022]

I don't consider cryptocurrency as a high yield investment. There are some smart traders that are making decent gains in cryptocurrency daily trading. It becomes risky if you don't know what you are doing. Many crypto traders cannot comprehend the complexity of the market.

 

[Imran Noori]

Definitely, crypto is a risky investment, you need invest wisely in it.

 

[Golden9]

Shitcoins are the highest risks coins in cryptocurrency, especially when they are not yet on larger centralized exchanges. It's easy to fall victim to a rug pull.

 

[rubesh]

Due to its extraordinary volatility, cryptocurrency is regarded as a high-risk investment. Prices can fluctuate dramatically from hour to hour, and because there is no centralized body governing the market, predicting when prices will rise or fall can be difficult. Furthermore, because the cryptocurrency industry is still in its early stages, there is a lack of regulation and legal protection for investors. Furthermore, due to the decentralized structure of the system, it might be difficult to monitor and safeguard against fraudulent actions. Finally, bitcoin technology is complicated, and there is always the possibility of technical failures or security breaches.

 

[Shavkat]

It is considered because the value changes at random. We cannot be sure if it is stable for a particular period of time.

 

[hastral45]

Cryptocurrencies are not like fiat currencies. They are digital in nature. They are decentralized which means are not under financial regulations. And finally, they are volatile.

 

[Bisolami]

Cryptocurrency is considered a high-risk investment due to its volatility, lack of regulation and oversight, and potential for hacking or fraud.

Additionally, the underlying technology and infrastructure is still relatively new and untested, adding to the overall risk.

I think people who are very greedy to make so much money at once from cryptocurrencies are the ones who say that it is very risky to invest in it.

 

[uptrendfinancialsignal]

Cryptocurrency is regarded as a high-risk investment program for each and every individual who want to invest in it.

 

[Bisolami]

It is a very risky investment. Anything that has to do with cryptocurrency is risky and that is why you have to be very careful

 

[gammarays]

Crypto currency is a high risk venture because it is volatile. There is no fixed value attached to it so price is dependent on market actions. Price can dip in minutes so it's highly risky.

 

[Bisolami]

Crypto currency is a high risk venture because it is volatile. There is no fixed value attached to it so price is dependent on market actions. Price can dip in minutes so it's highly risky.

You are right and the price can go up or come down at any time so it is very important for you to be careful about the way you invest in cryptocurrency

 

[uptrendfinancialsignal]

Cryptocurrency is a high-risk investment because it is very volatile.

 

[Bisolami]

It is very volatile because the price goes up and comes down so you need to be careful about when you are buying

Cryptocurrency is a high-risk investment because it is very volatile.