For most new investors, Cryptocurrency is a very lucrative investment option that promises high returns at a risk that cannot be determined. After all, there is nothing that can accurately tell us if a coin increases or decreases in value. One day you think the project is doing great with new investors putting in their money and suddenly, overnight, your brokerage is being sued by the SEC and the main figure behind the coin runs away with all the money. Even worse, you have figures like Elon Musk who can influence the entire market by sending out a tweet without saying anything at all.
It's a nightmare.
You basically buy a digital currency with the hope that the next person pays more. And yet, we still do it.
A while back, when I first started trading cryptocurrency on my brokerage of choice, I was immensely attracted by the high volatility and potential gains. A certain price movement was almost guaranteed, no matter the time or day. However, there was a moment when crypto just seemed to be lacking something I desperately sought for.
Stability.
Assurance.
Investing in Crypto is a risk. A tremendous one at that. In the large scheme of things, it does not follow clear patterns or adjust to the movement of other coins. Yes, you can vaguely see how they move based on giants like Bitcoin or Ethereum but still, most coins just do whatever they want.
Even big updates or merges that are supposed to change the entire project hardly ever brought a result I was satisfied with. In the end, crypto is more of a gamble.
If you want to invest in crypto but with clear risk management in mind, then invest in Bitcoins and Ethereum who define the majority of the space. If you want to go further than that, it's pretty much like the wild west.
You will either succeed by luck and patience or drown in scams, hacks, and projects that never had a chance, to begin with.
PS: If you don't know how to deal with crypto, don't bother keeping it in wallets to use on decentralized applications. A large chunk of crypto gets lost in failed transactions or simply forgetting the backup key.... I almost cried when that happened to me.
