Investment in cryptocurrency comes with a risk tag that can flow your hard earned money from your hand within minutes or even seconds. Although, the widening scope and growth of virtual currency has attracted enumerable potential investors but the fact that it comes with a risk warrants extreme care and analysis before one make a decision of a lifetime. According to website, Blockquire, investment in cryptocurrency is an emerging market with much more growth to follow. Traditionally crypto was seen majorly as bitcoin but the emergence of new virtual currencies not only has opened new investment channels for investors but for career seekers as well. However, keeping the risk factor in mind is always a plus point. So, here are 5 risks you must acknowledge before going all out. Take a look!
Market Volatality
Cryptocurrency is extremely volatiles with figures changing overnight. Despite the amount invested in it, it is susceptible to gain or lose indexes resulting in massive crashes. But, this is all part of the story of a growing virtual currency world. So, if you’re investing in crypto market, you should be anticipating unpredictability in market values. Consider having a strategy that keeps all the factors in mind before investing.
Regulatory issues
Regulatory issues are among the issues that deter investors from participating in crypto investment. Crypto industry is quite new that concerns governments and finance regulators worldwide due to its structural and taxes rules. In some countries, there are issues pertaining to the legality of cryptocurrency. Hence, it is one of most influential element that shapes investor decisions to invest in crypto market.
Crypto Scams
The virtual industry is completely new and people blindly follow information from unverified sources. With that being said, there are chances that one might get scammed not having complete info. Some of the crypto scams include twitter bots, and ICO market that require investors to invest in stock market IPOs. And due to lack of proper knowledge and research, they eventually end up being scammed. The most common pattern among all crypto scams is that they promise a handsome gain in a short period of time. So, you have to avoid them at all cost. Do your due diligence before investing in any crypto currency. Look for contact details, office address, and get in touch with people before you invest your money.
Consumer Protection
One of the major risks cryptocurrency investment subsumes is consumer protection. Due to lack of control and regulation, crypto investment is hardly insured. Even if you are invested in trusted companies, there are chances that they can be hacked due to their security issues. And, this is not new, there are cases when exchanges get hacked and investor lost all money.
Longevity
There is no exact prediction on the growth of virtual currencies. No doubt, these cryptocurrencies have a huge potential. But the growth is largely dependent on speculation. And, with the introduction of more and more virtual currencies, their values would be close to almost zero.
Finally
Given the fact, cryptocurrency is a major platform for large capital investment. You might be attracted in gaining maximum profits from the opportunities around. However, keeping all these factors in mind would prevent you from losing big.