Post
Topic
Board Economics
Re: less risk or big profit?
by
CPNpr
on 03/07/2023, 17:33:03 UTC
Cryptocurrencies are a very risky type of investment because price fluctuations are very high, a decrease or increase in prices can reach 2 digit percent so that we have to understand the risks that can occur, many people get stressed because of losses and sell assets to invest in cryptocurrencies.
That is why here we need insight regarding risk management in investment. I personally would of course choose to invest more in assets that have minimal risk. And only invest small amounts in assets that have big risks such as Crypto, especially Bitcoin. So that our mentality or psychology can remain calm when we see that our crypto investment has decreased in value. Because we only put a few assets there. Real Estate is the most dominating my investment assets. and maybe only about 10% are in crypto. And this is the only amount I can afford to risk.
I agree with you, it is natural to have investment risk. And it can never happen that I will refrain from investing because of this risk. If you are making a short term investment in cryptocurrency. Then I would say you have nothing to worry about here. But you must be strategic when it comes to investing. With high volatility in cryptocurrencies, the higher the risk, the higher the reward