What Are the Risks of Investing in Cryptocurrency in 2024

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Investing in digital assets is the thing of the future, and the fact that we are already living in a digital world, there is no reason not to invest in it. Of course, every investment comes with certain risks, and cryptos are no exception, so let’s focus today on what are the risks of investing in crypto in 2024.

Digital assets can be hacked

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Let’s start from the most talked-about reason of all, and that’s the security of digital assets. Now, there are several aspects to cover here, and the first one is about choosing the best trading or/and exchanging platform. The number of these platforms is pretty vast, but even though the new ones will offer much more advantages, sticking to those that have already operated for some time is always the best choice, just in case. The second phase is about choosing where and what type of digital wallet to create, and there are two main types, cold and hot wallets. Now, both have certain advantages and disadvantages, but once you decide on the one that suits you the most, it’s time to pick where to create one.

That is crucial as we want the one that has an app that is compatible with our device and, of course, the one that has our favorite payment method. These two things are the most important, and by carefully choosing the platform and digital wallet, the overall safety of our digital assets will be much higher, meaning that there are no additional risks.
Furthermore, we are all aware that cryptos are stored in digital wallets, and we cannot physically hide them somewhere or put them into the safe to make sure that no one can access them. Since every transaction requires the internet to be performed, there is a concern that it can easily be hacked, so our money may end up on some other account.

The same thing is with crypto wallets, and people are afraid that some experienced hacker can access them and take all the funds in a few seconds. Although these concerns have a basis and seem pretty logical, you should know that crypto transactions are safe and secure, and it is almost impossible to misuse and hack them. Big companies around the globe use them and transfer large amounts of money, and they would not do that if they were not sure that their funds would end up in the real account. If you are still not convinced that using cryptos is safe, make sure to check turbofinance.com and learn how to secure crypto wallets even better.

The concept is still new

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From the first moment cryptos emerged as the next big thing, they were surrounded by some controversy. Now, there were some good points about them, as the vast majority of people were entirely new to this concept and how they work, but the amount of false news and inaccurate, to say the least, information truly was tremendous. Today, after a little more than a decade, cryptos surely represent something that will mark the future ahead of us and that will stay with us for quite some time, but people around the world are still not sure how everything works. The problem is that the whole concept might be too complicated for regular folks who are not good with technologies and do not understand them very well. Luckily, it is less complicated than it looks, and since people around the world get used to using credit cards, they can easily switch to cryptos if they are willing to, and they can learn to use them in a short amount of time. Besides that, since it is expected that cryptos will still be here with us in the future, people will start understanding the whole concept pretty soon, and what is even more important, they will probably start to use them in everyday life. Just take the blockchain technology as an example, and even though it started as something strictly connected to cryptos, today, it’s much widely used, and more and more industries every day are beginning to implement this new tech.

Volatility can be both a good and a bad thing

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Yet another thing that, for most people, was a reason not to invest in cryptos is the volatility. Namely, with cryptos, not only that their value rises and drop pretty fast, but these changes are also much greater than in any other market, which makes them highly risky to invest in. Now, as for what this stands for, the answer is pretty simple, it is a risk that’s part of any market you choose to invest in, as from the volatility comes the profits. The only thing here is that you need to spend much more time doing research and keeping up with the latest flow of information, as it is the only way to predict whether to sell or buy cryptos. But, for those entirely new to this, let’s get to the basics.

You probably heard that cryptos are highly volatile, but what does that actually mean? Well, it means that their price can change rapidly, and when we say rapidly, we mean in a few seconds. It can be a good and bad thing, depending on if their price is increasing or decreasing. If it is rising, we can earn more money than planned and become rich in a matter of seconds, and if it is dropping, we can easily lose more than we thought and run out of money. It is almost impossible to predict these price changes, and no one can say for sure when cryptos will stop being highly volatile and when their price will become stable. The main reason for that is decentralization which means that these currencies are not regulated by any government and do not depend on any other currency, which is their main characteristic. Of course, there is always something you can do as a crypto investor and trader, and that’s investing in cryptos that are more likely to succeed.