3 Huge Risks of Crypto Investing and How to Minimize Them
It's easy to understand why someone would want to invest in cryptocurrencies. Some of them have historically produced incredible returns. And other cryptocurrencies are tackling some interesting, real-world problems in novel ways.
However, the cryptocurrency space can be risky. Here are three of the biggest risks that I believe can hinder your chances of positive returns.
Crypto values rise when demand for the currency or token is greater than its supply. When cryptocurrencies are developed, their developers create ways to incentivize demand and regulate supply. This is referred to as "tokenomics," and it differs from project to project. Some designs are very good. But in other cases, the tokenomics don't support long-term price appreciation.
Source Fool.com
