Reasons why you should NOT trade cryptocurrencies

Maybe there are good reasons to not trade Crypto but the fact is that the price has rocketed and people have made millions. I think crypto can be traded but only as a small % of your portfolio

LemonFeather posted:
Maybe there are good reasons to not trade Crypto but the fact is that the price has rocketed and people have made millions. I think crypto can be traded but only as a small % of your portfolio

- Although I have lost half of the money that I put in Crypto, I am still hopeful that the prices will rise once again 😊.

It is that mindset that prevents bitcoin from hitting the floor .. Please do not sell they just see it as a blip and soon they will be millionaires . For many bitcoin is like a lottery ticket

BluePanther posted:
This thread is in response to Leo23's discussion: 'Trading the cryptocurrencies Bitcoin,Etherium, Litecoin etc....'
https://www.myfxbook.com/community/general/trading-cryptocurrencies-bitcoinetherium-litecoin-etc/1513362,1

I am blocked and unable to post in his thread, but I would like to share some important information related to cryptocurrencies that all investors/traders should be made aware of prior to their foray into this new market.

My only questions are:
- Is this another case of Tulip-mania?
- Does Leo23 have a vested interest in garnering support for investment interest in cryptocurrencies?

Here is an important article I think the community should read to get a better understanding of recent growth in cryptocurrency demand (specifically BTC):

https://protradingresearch.com/2017/12/14/one-bank-believes-it-found-the-identity-of-who-is-propping-up-the-bitcoin-market/

Sharing (information) is caring. 😎 Feel welcome to share your personal and professional opinion on cryptocurrencys, especially if Leo23 has blocked you from his thread. Please backup all opinions with evidence where possible. Unfounded opinions, posts contrary to generally-accepted social norms of respect, and posts in breach of myfxbook's Terms of Use are deemed inappropriate and may be reported.

Full disclosure: I have invested $0 in cryptocurrencies, and have 0 intention to do so any time soon. The phenomenal gains are the only reason it has caught my curiosity. I will continue to trade 'normal' forex only TYVM.

How's that going for you these days?

The Tether Scandal: The Biggest Threat To The Crypto-Ecosystem (JUNE 20, 2021)
https://globalintelhub.com/the-tether-scandal-the-biggest-threat-to-the-crypto-ecosystem/

Brothers Abscond With $4 Billion In Crypto Stolen From South African Exchange (JULY 6, 2021)
https://globalintelhub.com/brothers-abscond-with-4-billion-in-crypto-stolen-from-south-african-exchange/

The Creator of Dogecoin Says He Now Believes That All Cryptocurrency Is Horrible (JULY 15, 2021)
https://futurism.com/creator-dogecoin-cryptocurrencies-horrible

There are both pros and cons for trading cryptos. But like @LemonFeather said, there are chances for cryptos to gain more value as well. Whether or not to trade cryptos is up to every individual choice, but I personally think they have good growth prospects in the technology driven future.

Tether Executives Said to Face Criminal Probe Into Bank Fraud (JULY 26, 2021)
https://globalintelhub.com/tether-executives-said-to-face-criminal-probe-into-bank-fraud/

Here are a few reasons that can hold you back from investing in cryptocurrency.
• It is highly volatile
• It is an unregulated space
• Legal issues can pop up
• The market is prone to illegal activities
• Do not invest if you do not understand the market and its working procedure

gwendolyncole posted:
Here are a few reasons that can hold you back from investing in cryptocurrency.
• It is highly volatile
• It is an unregulated space
• Legal issues can pop up
• The market is prone to illegal activities
• Do not invest if you do not understand the market and its working procedure

Completely agree with this. You need to know what you're doing and not go in half heartedly. You need to make sure you can afford what you risk and also you can stomach the volatility. 10% swings are very comment and that not might sound like a lot with a couple of hundred at stake but if you have a couple of thousand those swings hit a lot differently

😉

I prefer to focus on the positives rather than the negatives.

Smith2525 posted:
I prefer to focus on the positives rather than the negatives.

If you do that then you will end up losing all your money. As good investor needs to look at positives AND negatives

@Karlos Fandango spot on , and I believe there is plenty of scope in crypto and many people can make tons of money if they trade correctly in that market.

CraigMcG2020 posted:

gwendolyncole posted:
Here are a few reasons that can hold you back from investing in cryptocurrency.
• It is highly volatile
• It is an unregulated space
• Legal issues can pop up
• The market is prone to illegal activities
• Do not invest if you do not understand the market and its working procedure

Completely agree with this. You need to know what you're doing and not go in half heartedly. You need to make sure you can afford what you risk and also you can stomach the volatility. 10% swings are very comment and that not might sound like a lot with a couple of hundred at stake but if you have a couple of thousand those swings hit a lot differently

I believe traders already are risk takers. When you are trading, you are not doing anything with 100% certainty. Confident traders are those who don't expose themselves to the risk they can’t afford to take.

necolesilvers posted:

CraigMcG2020 posted:

gwendolyncole posted:
Here are a few reasons that can hold you back from investing in cryptocurrency.
• It is highly volatile
• It is an unregulated space
• Legal issues can pop up
• The market is prone to illegal activities
• Do not invest if you do not understand the market and its working procedure

Completely agree with this. You need to know what you're doing and not go in half heartedly. You need to make sure you can afford what you risk and also you can stomach the volatility. 10% swings are very comment and that not might sound like a lot with a couple of hundred at stake but if you have a couple of thousand those swings hit a lot differently

I believe traders already are risk takers. When you are trading, you are not doing anything with 100% certainty. Confident traders are those who don't expose themselves to the risk they can’t afford to take.

There is risk in everything we do. The important thing is to understand and manage the risk. Nothing can be gained without risk

CraigMcG2020 posted:

gwendolyncole posted:
Here are a few reasons that can hold you back from investing in cryptocurrency.
• It is highly volatile
• It is an unregulated space
• Legal issues can pop up
• The market is prone to illegal activities
• Do not invest if you do not understand the market and its working procedure

Completely agree with this. You need to know what you're doing and not go in half heartedly. You need to make sure you can afford what you risk and also you can stomach the volatility. 10% swings are very comment and that not might sound like a lot with a couple of hundred at stake but if you have a couple of thousand those swings hit a lot differently

Without proper knowledege, it will be very dangerous to trade in this market.

The main reason why people shouldn't enter cryptotrading is pretty simple. They will lose everything. If we speak about forex trading for example, then everything is intuitive clear there, you have to learn properly and practice a lot in order to make successful trades. However, if we speak about cryptotrading, then the crypto market can easily get you down even if you're a professional trading. Moreover, cryptocurrency is a very volatile and fluctuating asset, which get lots of energy from you , whether it's mental or physical one. So, I guess that if you aren't afraid of cryptos, then you're welcome.