Jasmine
VIP Contributor
When people hear that a lot of people became millionaires by investing and trading cryptocurrency, they also want to invest in cryptocurrency and make profits, but what they actually do not know that crypto currency investment is not always profitable.
Here are the things, you need to consider before investing in cryptocurrency
Volatility
Cryptocurrency price is depended on demand and supply, unlike the fiat money, whose value depends on the economic performance of the country, cryptocurrency primarily depends on buying and selling behavior.
For example, if you have bought 1 Bitcoin for $42,000 about a week ago, you would have encountered a huge loss because currently Bitcoin is $36,000. Losing $4000 just in a week is a huge loss. Bitcoin is of course the most popular and the most valuable cryptocurrency, but the price is not stable and the volatility makes it a risky investment.
Rug Pull
Rug Pull is a term used in the cryptocurrency market when the developer of the crypto coin or token or whales (big investor) run away with the investors’ money. Rug Pull frequently happens and the latest one is Squid Game Token. When the developer of Squid Game Token ran away with the investors’ money, the value of token became worthless overnight from over $2000.
Here are the things, you need to consider before investing in cryptocurrency
Volatility
Cryptocurrency price is depended on demand and supply, unlike the fiat money, whose value depends on the economic performance of the country, cryptocurrency primarily depends on buying and selling behavior.
For example, if you have bought 1 Bitcoin for $42,000 about a week ago, you would have encountered a huge loss because currently Bitcoin is $36,000. Losing $4000 just in a week is a huge loss. Bitcoin is of course the most popular and the most valuable cryptocurrency, but the price is not stable and the volatility makes it a risky investment.
Rug Pull
Rug Pull is a term used in the cryptocurrency market when the developer of the crypto coin or token or whales (big investor) run away with the investors’ money. Rug Pull frequently happens and the latest one is Squid Game Token. When the developer of Squid Game Token ran away with the investors’ money, the value of token became worthless overnight from over $2000.