Cryptocurrency is gaining popularity in last two years among investors for various reasons including its unique structure and the potential for high returns.
In last two years 15 millions Indians are now trading digital coins. There many platform to trade crypto in India according to analysis there are 14+ millions users are use in CoinSwitch Kuber application alone. Most of the people are familiar to some crypto assets how they work.
Before you invest, you should be aware of the volatile nature of various cryptocurrencies and potential security and how the manage the risks involved in crypto currency trading.
#Market #risk: Like other commodities, crypto assets are exposed to risks arising from market movement.where cryptocurrency market are non volatile. There are two types of risks associated with cryptocurrency trading, i.e., systematic risks and unsystematic risks. The systematic risk is present in all cryptocurrencies because it is inherent in the crypto markets. Unsystematic risk, which is particular to a single crypto asset, could involve a change in the company's fundamentals
#High #volatility:
In December 2017, Bitcoin was trading around $15,864 (roughly ₹ 11,80 lakh). In January this year, it crossed $40,000 (roughly ₹ 29.70 lakh). Continuing its bull run, it reached an all-time high of $65,000 (roughly ₹ 48.27 lakh) by April. Then in May, it crashed and throughout June it remained below $30,000 (roughly ₹ 22.28 lakh). The coin began rallying again around July 20 and surpassed $45,000 (roughly ₹ 33.42 lakh) last week for the first time in almost three months. Similarly, most other popular cryptocurrency coins have behaved over the past few months.
@lack of regulations: There are significant differences in the legal premise of digital currencies among the various regulatory agencies, which might determine the #Crypto #future #in #India . On the one hand, regulators are concerned that criminals and terrorist groups may use bitcoin and other cryptocurrencies to money laundering. indian government has plan to regulate crypto as legal with rules and regulation and tax
To manage the risks involved in cryptocurrency trading
Do Your Own Research (DYOR)
the first investment rule, i.e., ‘Do your homework and only invest what you can afford to lose’. This rule is not just for cryptocurrencies but for all investments in general. and some points are include like
@Understand the risk ratio:
@invest many currency not only one so this is help to reduce the risk
@choose currency quality not quantity
@Be patience.
@always take entry with stopl/loss