Hi,
I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.
But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying 'Highly volatile investment product. Your capital is at risk.' (which is a banner sponsored by etoro, but it doesnt appear at all cryptos...)
I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot...
If anyone could shed some light on this that would be appreciated.
You are asking two different questions, the first is do different assets that are on the same market present different risks? And the answer to that is yes, bitcoin is way less risky than a coin being released during this year and the reason is that bitcoin is the leader of this market and it will remain that way for the foreseeable future, now for you other question can you lose more than what you invested in a particular coin? And the answer to that is it depends, if you are only buying or selling without using leverage then the answer is no, you will only lose the capital you invested in it and the warning you get comes from the fact that coingecko is probably legally obligated to put such warning to avoid being the target od lawsuits, however if you use leverage and you do not use a stop loss then you can lose more than what you invested in the coin originally.