Cryptocurrencies

A hot news topic in the last several months has been that of cryptocurrencies. Their recent rise (and now fall) in shareholder value has been the subject of discussion of economists and investors alike. While the average person remains in the dark about how they actually work, (I only understand the basics my self) what most people do seem to understand is how volatile they are.  For a lone time crypto’s (notably Bitcoin) were relatively stable; during that time they were also worth much less than they are today. In recent months, their value has gone off the rails, peaking at over $19000 per coin. That alone has encouraged many people to invest into Bitcoin and similar crypto’s because of the money involved. However, cryto is very volatile, its price fluctuating massively. At its peak, this volatility has spawned such jokes as “My son asked me for $12365 in bitcoin, so I gave him his $8592.” The reason I bring all of this up is because of the risks and rewards involved with investing, especially with volatile currencies. A significant number of people who have invested into the crypto market have done so without any prior hand research, simply trying to profit off of the volatility. And herein lies the risks and rewards. On one hand, it’s possible to make thousands of dollars easily, on the other, one may be stuck with worthless internet money. Usually, it’s hard to be successful in this field without lots of research into its ideas and concepts. In that way, a full and complete understanding of the topic can provide ample rewards. Failure to understand the crypto market -or financial markets at all- can lead to serious financial risks. (#HODLGANG)

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