Cryptocurrencies are very volatile and, as such, the decision on the cryptocurrency to purchase greatly depends on the risk the buyer is willing to take. Generally, the lower the market cap of a coin, the higher the volatility and the more the likelihood for higher returns – and higher losses. The mainstream coins such as bitcoin, bitcoin cash, and Ether, which are more stable, have a lower risk. Although they can be considered “safer” than less known coins, they also typically have lower returns. The smaller coins are riskier but their profits can be faster and bigger. You will need to do your own research to be sure that you buy a currency that makes sense for your own investing situation. To make a really intelligent decision you should find out who is the group behind the coin, read their white paper, and determine what makes their coin better than others. Remember that it is always possible that any cryptocurrency, including the big ones, COULD go to zero and you would lose all your money. There are 100s of small coins that have already lost over 95% of their value since they peaked. So choose with caution and knowledge.

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Category: Trading & Investing
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