The Risks and Rewards of Cryptocurrencies

[Karmakid]

The volatility of the cryptocurrencies are the real deal. The price of the bitcoin can easily change because of the demand and supply in the market. Many people thought they people is easy money and they are not considering the risks, it is the reason why many people are losing investment in the market.

The higher the risk, the higher the reward. That is the name of the game for cryptocurrencies. In order to make a lot of money, you need to take a lot of risk. All of those people who loses their money in the market are misinformed with the opportunity that the cryptocurrency has, they thought that cryptocurrencies are all high reward without risk.

[1714845450]

1714845450

[judaspriest]

The volatility of the cryptocurrencies are the real deal. The price of the bitcoin can easily change because of the demand and supply in the market. Many people thought they people is easy money and they are not considering the risks, it is the reason why many people are losing investment in the market.

The higher the risk, the higher the reward. That is the name of the game for cryptocurrencies. In order to make a lot of money, you need to take a lot of risk. All of those people who loses their money in the market are misinformed with the opportunity that the cryptocurrency has, they thought that cryptocurrencies are all high reward without risk.

if they are only concerned with profit without thinking about risk, it's called gambling, of course in crypto currency the more you have a lot of money to trade and if your analysis is right you get a lot of profit, but if you don't have knowledge about trading knowledge everything will be useless

[uray]

The higher the risk, the higher the reward. That is the name of the game for cryptocurrencies. In order to make a lot of money, you need to take a lot of risk. All of those people who loses their money in the market are misinformed with the opportunity that the cryptocurrency has, they thought that cryptocurrencies are all high reward without risk.

The term of higher risk and higher rewards can be coined with coins that can be trusted and there are a very few number of coins in the market that can be trusted and then there are token projects that are like hit and miss, earlier people used to wait to dump everything once the market opens and now majority even does not get listed in the market.

[DeathProxy]

For a very speculative asset like bitcoin, there must be risk presently the price of bitcoin is down at the moment and many that bought at a high price are in loss now, but the high risk and volatility of crypto makes it more rewarding if managed well. In a twinkling of an eye cryptocurrency can provide good profit which makes it also rewarding.  The ecosystem of cryptocurency makes it a high level risky investment and also a highly rewarding investment if managed well

[agentx44]

BBC recently did a interview around the volatility of cryptocurrencies. I think we are still so early in this industry but I would love to know your thoughts about where we are going and how you think the landscape will change.

People in the podcast include:

Marc Warne, Founder, Bittylicious
Jemima Kelly, reporter, FT Alphaville
Dave Jevans, CEO, CipherTrace


https://www.bbc.co.uk/sounds/play/m000676m

Once you enter the world of cryptocurrencies and start investing on it, you should look forward already with the risks and rewards you may encounter. Just like in life, most of your decisions is a gamble. You should learn how to find the best choices to be successful with your investments and make sure you are knowledgeable enough before entering the market. Knowledge is a crucial necessity here because it gets to determine whether you'll be able to handle the risk you will be involved with and the range of rewards you may get from your investment as you get to choose a good one.

[Vishnu.Reang]

For a very speculative asset like bitcoin, there must be risk presently the price of bitcoin is down at the moment and many that bought at a high price are in loss now, but the high risk and volatility of crypto makes it more rewarding if managed well. In a twinkling of an eye cryptocurrency can provide good profit which makes it also rewarding.  The ecosystem of cryptocurency makes it a high level risky investment and also a highly rewarding investment if managed well

Those who had purchased the coins at high levels would be at a loss now. But the most important thing to remember here is that these losses are not realized. Until you sell your coins and book losses, it is not right to claim that you have suffered a negative return from the cryptocurrency investment. And with a volatile asset such as Bitcoin, we can't expect the prices to go up all the time.

[Silberman]

Once again, I am convinced that cryptocurrency is a place where the concentration of risks just rolls over. And to blame for all the volatility of the market.
They turn the market as they want. It is impossible to predict something all the time. You have to rely on those things that the market is manipulated by those who have large volumes and they may want something.
In fact, it is very difficult to set and make forecasts of any kind in such a market. In view of this, the only less risky strategy is HOLD. Everything else is gambling.

You can still make money in the markets even if you cannot predict them all the time, it is very common for people to believe that only if you can predict the market perfectly then is impossible to make money in those very same markets, but that is not true, as long as you can predict enough of the movements of the market and you use very strict money management techniques which reduces your losses when you are unable to do this then you will become a successful trader regardless of the manipulations of the market.

[juperos]

We don`t get rewards if we don`t risks. After all, we are the one that will experience the result. No matter we lose, we always want to get up and fight. Cryptocurrency is a life changer. Many people are looking for this investment as a way to become rich. But they also see this as a great SCAM. Whatever we are perceiving in crypto industry, it will still remain cryptocurrency. We just part of their development which in vice versa, we are the stakeholders of crypto.

indeed, there is no reward for the shy, lazy, wanting to be acted upon by the big guy, that's what everyone knows. Electronic money is a good investment, it really helped my life a lot and to win big in this world you need to be persistent because it is still new.

[TitanGEL]

I think we will go on a financial freedom. which there is no more about the cost of the transaction, about the length of time the transaction, about too many rules in a financial transaction. the crypto industry changes everything. everything is instant and profitable.

It seems you have chosen the wrong word "financial freedom". There is no correlation with your exact explanation that might be the freedom and efficiency of transactions using cryptocurrency.

Financial freedom is a condition where a person reaches quite a lot of savings and is relatively safe, and the results meet his needs to live the desired lifestyle. Financial freedom can also be defined as a phase when we are in peace and the choice not to work anymore for money, because money is working for us (passive income). What is meant by passive income here is money that goes in without us having to work. while active income is income earned from working and then paid or earned wages and if it does not work will not get income.

The essence of financial freedom is that your passive income each month can meet your monthly expenses. For example, spending per month is USD 1000, then you are financially free if your passive income every month is USD 1000 or more.

Financial freedom can only be achieved through passive income, ie income earned outside of work that can support you, with enough passive income, you can be financially free for life even if you resign from your job.

Financial freedom is not just about having a lot of money it is about how you manage your money, there are many financial illiterate in my country and they do not know how they will manage their money if they have high paying jobs and that's why they keep experiencing financial problem. 

[EdvinZ]

The higher the risk, the higher the reward. That is the name of the game for cryptocurrencies. In order to make a lot of money, you need to take a lot of risk. All of those people who loses their money in the market are misinformed with the opportunity that the cryptocurrency has, they thought that cryptocurrencies are all high reward without risk.

The term of higher risk and higher rewards can be coined with coins that can be trusted and there are a very few number of coins in the market that can be trusted and then there are token projects that are like hit and miss, earlier people used to wait to dump everything once the market opens and now majority even does not get listed in the market.

Higher risk does not mean greater reward. For example, you can invest in the TOP steadily developing cryptocurrencies with less risk to your investments and get a good capital gain in the future. But you can invest in a very risky new coin, which will soon be thrown by its developers and its price will fall forever, and you can lose the money invested in it.

[KnightElite]

The higher the risk, the higher the reward. That is the name of the game for cryptocurrencies. In order to make a lot of money, you need to take a lot of risk. All of those people who loses their money in the market are misinformed with the opportunity that the cryptocurrency has, they thought that cryptocurrencies are all high reward without risk.

The term of higher risk and higher rewards can be coined with coins that can be trusted and there are a very few number of coins in the market that can be trusted and then there are token projects that are like hit and miss, earlier people used to wait to dump everything once the market opens and now majority even does not get listed in the market.

Higher risk does not mean greater reward. For example, you can invest in the TOP steadily developing cryptocurrencies with less risk to your investments and get a good capital gain in the future. But you can invest in a very risky new coin, which will soon be thrown by its developers and its price will fall forever, and you can lose the money invested in it.

But not all of investment that have high risks are good to take. Do not just invest your money because of the high rewards, you should remember that you should know and you should handle the risks first before you put your money. In an invesment, risks are matter so considering it is part of the process.

[cotton ball]

The risks of cryptocurrencies are that these are the same risks as in any investment.

I disagree.

The risk that we are taking when we are investing in cryptocurrency have much higher risk than investing on real state properties, or in a business, why is that, because we are talking about volatility here that could spikes, either it goes up very wild or goes down very wild, like as of now, bitcoin's price dropped again to $7,500 and it is still very puzzling when will be the next bull run going to occur to recuperate our losses.

Although the rewards of bigger risk are always big, that is what I am sure about.

Not the same risk with cryptocurrency and other investment because with bitcoin and altcoin investing have big risk when price down, we don't know when bitcoin and altcoin goes down, for other investment I think can give opportunity to get profit but with little amount because have waiting for long time to get much profit later.

[Silberman]

Financial freedom is not just about having a lot of money it is about how you manage your money, there are many financial illiterate in my country and they do not know how they will manage their money if they have high paying jobs and that's why they keep experiencing financial problem. 

This is completely true, many of those that are looking to achieve financial freedom are thinking of a life in which they can spend all the money that they want without any consequence and the only ones that can do something like that are the ones that have a lot of money, the rest no matter how much capital do you think they have saved in their accounts have to exercise money management techniques all the time in order to keep their debts in check and to slowly but surely rise their passive income.

[FlamingFingers]

Definitely the industry is still at its young state,  that is why the potential risk is kind of more high, as the risk is high likewise the rewards too is also very enormous
Perhaps in future, regulations might help to curb such so as to interest more investors to have full confidence in the market

[crisanto01]

Financial freedom is not just about having a lot of money it is about how you manage your money, there are many financial illiterate in my country and they do not know how they will manage their money if they have high paying jobs and that's why they keep experiencing financial problem. 

This is completely true, many of those that are looking to achieve financial freedom are thinking of a life in which they can spend all the money that they want without any consequence and the only ones that can do something like that are the ones that have a lot of money, the rest no matter how much capital do you think they have saved in their accounts have to exercise money management techniques all the time in order to keep their debts in check and to slowly but surely rise their passive income.

Most of people are just being too greedy enough, they wanted to have everything in the world, they wanted to become the famous, the person that would like to worship by most people because he has a lot of money, they don't realize the other true meaning of abundance or the contentment. We are all aiming for money and we deserve and it is fine to become rich, but let us also remember that we can't bring to heaven the money, so the rich in heart is what's most important.

[cotton ball]

The risks of cryptocurrencies are that these are the same risks as in any investment.

I disagree.

The risk that we are taking when we are investing in cryptocurrency have much higher risk than investing on real state properties, or in a business, why is that, because we are talking about volatility here that could spikes, either it goes up very wild or goes down very wild, like as of now, bitcoin's price dropped again to $7,500 and it is still very puzzling when will be the next bull run going to occur to recuperate our losses.

Although the rewards of bigger risk are always big, that is what I am sure about.

Risk of cryptocurrency when price of bitcoin or altcoin have lower and we bu with higher price, many investor and trader always allowing with what people said and they investing with coin suggestion by the other, when you buy some coin by recommendation from some one you make mistake because he has sell his coin and make you buy it.

[Triffin]

The higher the risk, the higher the reward. That is the name of the game for cryptocurrencies. In order to make a lot of money, you need to take a lot of risk. All of those people who loses their money in the market are misinformed with the opportunity that the cryptocurrency has, they thought that cryptocurrencies are all high reward without risk.

The term of higher risk and higher rewards can be coined with coins that can be trusted and there are a very few number of coins in the market that can be trusted and then there are token projects that are like hit and miss, earlier people used to wait to dump everything once the market opens and now majority even does not get listed in the market.

Higher risk does not mean greater reward. For example, you can invest in the TOP steadily developing cryptocurrencies with less risk to your investments and get a good capital gain in the future. But you can invest in a very risky new coin, which will soon be thrown by its developers and its price will fall forever, and you can lose the money invested in it.

That is so true. Risks has nothing to do with rewards. In addition to that, there is no more doubts regarding old coins but new projects cannot be trusted. Old coins are also much more beneficial than the new ones. So choosing bitcoin over any new altcoin will definitely bring more rewards with zero risk factor. With knowledge and trust, a person can avoid all sorts of uncertain situations.

[enwi]

in my opinion, risks and rewards in crypto are things that will be in trading or investing in crypto, because volatile crypto prices cannot guarantee good luck will always be with us, so we must be prepared with whatever happens

[Aying]

in my opinion, risks and rewards in crypto are things that will be in trading or investing in crypto, because volatile crypto prices cannot guarantee good luck will always be with us, so we must be prepared with whatever happens

I agree, we don't expect what gonna happen if we take a huge risk investing and take big rewards. the market is very unpredictable and as of now the price is very bad and everyone is in panic mode. I can't say that this month is good or not but you can accumulate if you want to take a risk. for me if possible we may take a hard time to read all what we need to know to avoid big loosest.

[Silberman]

That is so true. Risks has nothing to do with rewards. In addition to that, there is no more doubts regarding old coins but new projects cannot be trusted. Old coins are also much more beneficial than the new ones. So choosing bitcoin over any new altcoin will definitely bring more rewards with zero risk factor. With knowledge and trust, a person can avoid all sorts of uncertain situations.

This is another important lesson, while there is no doubt that there is some correlation between risk and reward they are not perfectly correlated, which means that you can get a lot of rewards with very low risk and an example of this is to invest in coins like bitcoin or ethereum, and you can take a huge risk and get no rewards at all and the perfect example of this are all the icos and ieos that have failed through the years and that have given no profits at all to those that risked their money.