Ganibade
Verified member
Bitcoin risks that investors should be aware of
Danger one: Bitcoin's erratic price
Everyone is aware of how unstable bitcoin is, and those who invest in it will watch as its value changes drastically. Investing in bitcoin is not a good idea if you can't handle its ups and downs. If the loss of your capital will make you lose sleep, there is not much to be gained. I cannot emphasize enough how crucial it is to invest some of your discretionary funds in the Bitcoin market.
What are discretionary purchases?
Spending on vacation, eating out, entertainment, hobbies, and sports costs money.
Rent money and predetermined funds are never to be spent.
Second risk: hacking
Money invested in bitcoin was held by a business called "Cryptopia," which operated an online bitcoin trading platform. All customers who had bitcoin invested with Cryptopia lost their money after it was hacked. There were several heartbreaking tales about the significant sums of money that some people lost.
It must be emphasized once more that you should never gamble with money you cannot afford to lose on cryptocurrencies or put all of your eggs in one basket, as many of these investors seem to have done.
The actual sum of money lost by investors in Cryptopia is probably greatly overstated due to the increasing value of bitcoin, I should also mention. If a user put $1,000 into bitcoin.
Danger one: Bitcoin's erratic price
Everyone is aware of how unstable bitcoin is, and those who invest in it will watch as its value changes drastically. Investing in bitcoin is not a good idea if you can't handle its ups and downs. If the loss of your capital will make you lose sleep, there is not much to be gained. I cannot emphasize enough how crucial it is to invest some of your discretionary funds in the Bitcoin market.
What are discretionary purchases?
Spending on vacation, eating out, entertainment, hobbies, and sports costs money.
Rent money and predetermined funds are never to be spent.
Second risk: hacking
Money invested in bitcoin was held by a business called "Cryptopia," which operated an online bitcoin trading platform. All customers who had bitcoin invested with Cryptopia lost their money after it was hacked. There were several heartbreaking tales about the significant sums of money that some people lost.
It must be emphasized once more that you should never gamble with money you cannot afford to lose on cryptocurrencies or put all of your eggs in one basket, as many of these investors seem to have done.
The actual sum of money lost by investors in Cryptopia is probably greatly overstated due to the increasing value of bitcoin, I should also mention. If a user put $1,000 into bitcoin.
