Should you trust it?
By now, you have heard of cryptocurrency or at the very least one of the coins. Cryptocurrency has allowed a new generation of millionaires – and multi-millionaires – to emerge.
These investors have become the de facto cheerleaders of these digital currencies, recalling the advantages while ignoring the downsides.
Newer investors are also jumping onto the bandwagon to avoid losing out on the gains achieved by early adopters. Nevertheless, since many traditional investors don’t understand cryptocurrency, they ignore it, rejecting the gains as a trend.
Their apprehension is rooted in some truth, given that many crypto pump-and-dump schemes have emerged.
But these reservations aside, cryptocurrency is a risky investment, not because of its market volatility but because it’s unregulated. Investors have no recourse if they fall victim to a pump and dump scam or lose the key to access their wallets, losing millions in the process.
There is potential for some of the most mainstream coins – Tether, Bitcoin, and Ethereum – to become useful. But, if you want the consistency and support of a regulated market, you won’t get that with crypto, as many victims of pump and dump schemes can attest. Instead, if you aren’t careful, your wallet could disappear, the coin you invested in could vanish, the creators of these coins could prevent you from withdrawing your investment.
At the moment, cryptocurrency is the wild west. If you are the least bit risk-averse, it’s best to avoid this investment vehicle.