There is a topic that needs to be talked about as often as possible.
Crypto is an interesting opportunity for high-yield investments, but as we all know very well, the bigger the profit – the bigger the risk.
Let's take a look at the possible risks and how to minimize them (because it's impossible to avoid them).
📍Risk 1. Volatility
Cryptocurrencies are known for their high volatility and prices can change a lot in a short period of time.
How to minimize:
- Develop your own investment strategy and stick to it – I wrote about how to develop a strategy in previous posts.
- Diversify your assets.
- Invest only the funds you are ready to lose.
📍Risk 2. Security
Unfortunately, wallet hacks and coin thefts are not uncommon.
How to minimize:
- Use reliable and secure wallets.
- Enable two-factor authentication.
- Never share personal information or a seed phrase.
📍Risk 3. Scams and rug pools
The crypto market is full of projects promising quick x100.
How to minimize:
DYOR🔎