Crypto Risks | Is Everything Going to 0?
Anything can happen but nothing has to happen. This is the world of investing. There's risk everywhere you look and when you step into the landscape of crypto investing. Those risks go up 10x.
With crypto, there are so many added risks that aren't in the TradFi world. Questions like custody, third-party risk, blockchain risk, regulation risk, etc. all come to mind.
But with all of this added risk comes the huge promise of crypto: to the moon style gains.
So if you can grow comfortable and knowledgable in navigating the risks of crypto, you can also reap the rewards of asymmetric upside.
In This Clip:
- Anything can happen and nothing has to happen, that’s why it’s called investing, it’s about investment risk
- If you don’t want risk you can sit in cash, and even then you’re risking to not invest and miss on gains
- There’s counterparty risk in almost everything
- The only “safe” choice is to keep BTC in a cold wallet and your only risk would be your hedge against FIAT
- Belief on Hive and HBD by Khal - tad speculative but safe than other choices
- Exchanges lost (got moved not sold) in early Nov 15B in BTC and Coinbase 3.5B alone
- Maker DAO example on collateralized BTC
- wBTC depeg with FUD and influence of whales who sold 10M+ USD in hours, but the peg was regained
- wETH meme and burn process, no centralized custodian, only risk are bugs in contracts
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Is anything going to 0?
The USD!
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Then how we decides the value on cryptocurrency 💓
I think governments especially us government will not allow it to happen
Thank you so much for discussing all the different types of risks associated with using cryptocurrency as an investment vehicle. There are many people who do not evaluate the risks when they begin investing, and then express complete surprise when all goes wrong. All major financial (and frankly, life) decisions should have risk vs. benefit analysis, and an assessment of one's own risk tolerance. So thanks for outlining the risks of a very new and misunderstood asset class - I hope many people see this. 😊
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Risk-reward governs 90% of all things at the end of the day! Happy to help
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@khaleelkazi Thank you so much for this information...as I am new to this platform this sort of articles are really helpful in enhancing knowledge in the crypto world. Every work in this world involves risk so does crypto, as the finance people say 'higher the risk higher is the return'. Would be looking forward to more of such content..😊
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Underlying risks are everywhere as online scammers and hackers, can steal both the crypto and the FIAT. But most of the users of crypto lose due to their ignorance and investing money at the wrong time by the influencer without self-study and understanding. Thanks for such informational talking.
The fear of anything can happen as indeed stopped lot of individuals from investing and making more from it, though the risk side can't be ignore too, but of all cryptocurrency risk is definitely one that is Worth taking always
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No risk no reward, you must be able to weigh your risk and accordingly
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Thanks for the information you provided. Investing in the crypto market is risky, but on the other hand, it is possible to make big profits when we manage the risk well. Less risk, less profit, more risk, more profit. Among the very risky assets, cryptos are the safest for me.
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If I didn't like risk, I wouldn't be in crypto. It's worth it, especially when part of a community like Hive.
I learnt some new things here. Cheers!
Good Summary of crypto risks and benefits
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