Benefits and risks of investing in cryptocurrencies

[ajiz138]

We all will agree that before starting something, knowledge is the most important thing that we must have. And in the crypto space, this is the same, we must understand what we are doing.

And to make us more prepared, we should also know the risks of something we are going to do. Because I see some of them (beginners) sometimes do not see a risk, they only know about the benefits. I think this is not quite right, because I can say that we do not fully know what we are going to do.

As the saying goes knowledge is indeed the main thing when starting something, especially when it comes to the crypto world. At least, people will begin to have clear understanding of what we are doing so that we will make better decisions and have increased confidence for every action.

Similarly, risk appreciation is a cardinal value proposition as much as knowing what is to come out of it. A lot of people especially starters are more eager on the pros or the glowing side of a particular investment and end up compromising themselves. That way we are also able to be more prepared and have a better look into the actions taken since risks are seriously thought of.

It is actually natural when we see the positive, because I also can't say no, that when we start our journey in this space, the first thing we see is the benefits that will be obtained.

However, don't overdo it and close our eyes to see the risks too. Sometimes this is the wrong thing, seeing the positive side is not wrong, but we also have to see the risks too. Everything must be balanced,

[Rruchi man]

Before investing in cryptocurrencies and making investment decisions,i think it's important to be aware of both the benefits attached while investing in cryptocurrencies and the risks involved while investing in cryptocurrencies also.

A proper understanding of the benefits and risk involved with cryptocurrencies and investing in it is that you put yourself in a better position to avoid bad experiences and also in place to get the best gains from it. Without proper knowledge, you are just dancing at the danger gate because you have no idea of the value of what you own and, as such, will not treat it with the expected importance. If you also do not understand the risk with what you are having and investing in, there will be little effort from you to keep it safe.

[robelneo]

However, don't overdo it and close our eyes to see the risks too. Sometimes this is the wrong thing, seeing the positive side is not wrong, but we also have to see the risks too. Everything must be balanced,

There are a lot of cases like this; they know the risks, but they close their eyes and accept them because of greed and envy, and they treat investing like gambling when you can make a profit even small if you do research.
In every situation, you have to be comfortable with your losses, but this is after you exert all your effort and double check if you're investing in the right coin and at the right time.

[KingsDen]

Before investing in cryptocurrencies and making investment decisions,i think it's important to be aware of both the benefits attached while investing in cryptocurrencies and the risks involved while investing in cryptocurrencies also.

The knowledge some people have about crypto is one-sided. The hype some cryptocurrencies get often, has made a lot of people assume that mere buying those coins will solve all their financial problems. These beliefs about bitcoin has led many into making wrong bitcoin investment decisions which most times ends in regret for these investors.

Instead of buying these cryptocurrencies because of the fear of missing out,  it will be more profitable to conduct a proper research to actually understand what they are investing in.

[densus88]

However, don't overdo it and close our eyes to see the risks too. Sometimes this is the wrong thing, seeing the positive side is not wrong, but we also have to see the risks too. Everything must be balanced,

There are a lot of cases like this; they know the risks, but they close their eyes and accept them because of greed and envy, and they treat investing like gambling when you can make a profit even small if you do research.
In every situation, you have to be comfortable with your losses, but this is after you exert all your effort and double check if you're investing in the right coin and at the right time.

Greed is a bad emotion and we must avoid it. because it will make us not think clearly in formulating strategies, making analysis and making decisions. Many investors are greedy and do not think about the risks they will receive even though in investing the risk is very high and they should understand, but they oppose it. Many people only think about profit without thinking about the risks they will receive, especially if they choose the wrong coins because they are very risky but they still take them because they will get profit,

[Report]

+ The advantage of cryptocurrency is a decentralized system that everyone can determine, create prices and is not tied to third parties or governments and this is what can make someone in cryptocurrency get more profit. Many cryptocurrency coins that were initially worthless (under 0.0001 dollars) have become valuable and are in great demand by everyone including Bitcoin and Doge.
- The risks of cryptocurrency are also numerous, including hacking, prices that plummet in just a few seconds, there is no insurance except ourselves that secures our assets. The losses that may also occur are Scams with newly created cryptocurrency coins, many buy but eventually Dev runs away or sells all the coins he created, and there are many more examples of losses.

[ajiz138]

However, don't overdo it and close our eyes to see the risks too. Sometimes this is the wrong thing, seeing the positive side is not wrong, but we also have to see the risks too. Everything must be balanced,

There are a lot of cases like this; they know the risks, but they close their eyes and accept them because of greed and envy, and they treat investing like gambling when you can make a profit even small if you do research.
In every situation, you have to be comfortable with your losses, but this is after you exert all your effort and double check if you're investing in the right coin and at the right time.

Yes you are right, if that is the case then what is the difference with gambling. In gambling everything depends on luck and we should not treat the same thing in the world of investment.

This is what will be something that will raise questions in the end, maybe we are familiar with the question of someone who questions whether investment or trading is the same as gambling. Well, people like this are the ones who misunderstand it well.

[Yamzakid]

Before investing in cryptocurrencies and making investment decisions,i think it's important to be aware of both the benefits attached while investing in cryptocurrencies and the risks involved while investing in cryptocurrencies also.

When it comes to investing in cryptocurrencies, there are both benefits and risks involved. cryptocurrencies value can change constantly, showing high highs and low lows, that's why you need to be emotion-free if you want to invest in crypto because most of them when their value goes down, there's no guarantee that they'll rise again, and that's why you should invest in bitcoin and hold for the long run because it has less risk than other coins.
Store your funds in a non-custodial wallet and conduct thorough research before any movement because some of these non-custodial wallets and cryptocurrencies are made by scammers to target users, and you could lose your funds if you misplace your private key or if your wallet gets corrupted by a virus.

[Azharul]

We know that cryptocurrency market will be depending on risk. But if we can understand in cryptocurrency market, and also follow in cryptocurrency market level i believe that it could not be very risk for us. Because i believe that investment and trading is also depending on our personal skills. So i believe that investment is also the best profitable site in cryptocurrency world. So i think that when we want to invest in cryptocurrency market, we must be conscious about this matter.

[Ujok]

If you want to invest in cryptocurrencies for most benefits and least risks then go for Bitcoin and top altcoins as those are the best option for investors who want to earn risk free or low risk profits. All other options are risky and one who doesn't understand the market very well should stick with Bitcoin only.

that's right, by investing in bitcoin and the top altcoins the rate of loss is small and the opportunity to gain is very large. Lots of people choose to invest in meme coins or new coins in the hope of getting big profits but they forget the risks and the risks are very dangerous, we might go bankrupt if we experience losses because the level of loss is very large... it's better to choose something that is clear like top investing. 10 coinmarket, and this is a very small loss and a very big profit.