11 Risks Associated With Cryptocurrency: Bitcoin and Other Currencies
The buzz around cryptocurrency is undeniable. It’s the most exciting new technology to hit the market in years, and it has investors clamouring for more information. But with all the hype comes the risks of investing in cryptocurrency. But with all the hype comes risks that you should never ignore if you plan on investing in bitcoin or other cryptocurrencies.
Bitcoin and other cryptocurrencies have been around for a few years now, but more people are starting to invest in them. This is understandable because Bitcoin has increased its value by nearly 10 times this year alone. There is still some risk related to these digital currencies; you should know about all your options before investing, however, because not everyone sees a return on investment.
In this article, we will discuss risks associated with cryptocurrency so that you can make an informed decision on whether or not it’s right for your needs!
Top Cryptocurrency Risks to Investors
If you’re new to cryptocurrency, before investing, it’s important to know the risks involved. Here is a list of the top eight concerns investors should be aware of:
Cryptocurrency is volatile and unstable
It’s worth noting that Bitcoin, the original cryptocurrency launched in 2009 by Satoshi Nakamoto (the pseudonym for an anonymous person or group), has lost half of its value this year alone! This tells you everything you need to know about how risky these currencies truly are. For example, if someone had invested $1000 in Bitcoin at the beginning of this year, they would only have $500 left today.
Not backed by anything
Cryptocurrencies are different from traditional currencies like the US dollar or Euro. Unlike traditional currencies, no government or any organization regulates cryptocurrencies. This means that if something happens to your cryptocurrency, you may never see that money again!