You’ve probably heard of the popular cryptocurrency investing platform Bitcoin, but what about Ethereum?
What about platforms like Ripple or Zcash?
A New Frontier
Cryptocurrency investing has risen from an underground, financial trading outpost for techies to a full-blown investing phenomenon. Cryptocurrency has emerged as an innovative and major trading platform. However, the rapid rise and deeply technological nature of this type of investing has left it a largely foreign concept to many traditional investors. In fact, cryptocurrency is very much a new frontier, even for those familiar with it.
While cryptocurrency investing can be an exciting new platform, the industry around cryptocurrency is still establishing itself. As a recent Reuters article reports, cryptocurrency investing is still very much a Wild West for investors. Sufficient, standardized regulation really has yet to take hold, and with the diverse array of available cryptocurrencies, it has proven difficult to police.
If you’re considering cryptocurrency investing, you should not let potential risks deter you. After all, any investment type comes with risks. What’s important to remember is to practice smart investing. There is a learning curve, but if you practice smart investing and take proper measures to protect your investments, you can safely mitigate those risks.
Tips for Safe Cryptocurrency Investing
- Familiarize yourself with the cryptocurrency marketplace
- Understand basics of investing and trading
- Research available cryptocurrencies
- Cryptocurrency varies widely in terms of how it is designed, distributed and exchanged
- Available offerings differ in terms of traceability, anonymity and security
- Research and verify trading and exchange platforms
- Don’t lose your investment to fraudulent traders or fake exchange platforms
- Make sure you’re trading on a secure and verified platform
You can read the full Reuters special report on cryptocurrency exchange risks here.
If you’ve been approached with an investment opportunity for an Initial Coin Offering (ICO), check out our past post on what to know before investing in an ICO.