Op-Ed: Mitigate Your Risk – How to Invest for SuccessSince Bitcoin became the first decentralized cryptocurrency in 2009, digital currencies have been discussed a lot in the media. Much of that discussion has been about the volatile nature of their price. The recent burst of industry growth has not gone unnoticed, and many farsighted investors now see Bitcoin and other currencies as excellent opportunities to make big returns. Many investors, however, find that their lack of technical knowledge can inhibit their ride to the top.
This is partly because cryptocurrencies don’t have central banks regulating their value, and partly because the global economy doesn’t yet price its denomination. Much of this cryptocurrency volatility is the result of cyclical ‘subsequent’ consequences flowing on from what happens in the traditional finance sector. The internal causes within the uncharted territory of the network is anyone’s guess (but this article is to help you get an idea).
In the brave new world of cryptocurrency, previous performance is not necessarily indicative of future performance. Because the technology is so new, the performance data that due diligence normally requires does not exist in the same way it does for other markets and company stocks. For now, cryptocurrency markets remain speculative, which means investors must avoid emotional trading decisions, and accept their proclivity for risk. Part one and two of this series of articles looked at how money derives its value, and why some digital currencies become worth more than others. This installment of my investment series will help you improve your odds of investment success in cryptocurrency and its related markets.
Read the full story:
https://dcebrief.com/op-ed-mitigate-your-risk-how-to-invest-for-success/
