At the recent Yahoo Finance conference, cryptocurrency was widely covered. There were quite a few panels which discussed cryptocurrency. Most of the panels actually warned the investors of investing in cryptocurrencies. The panel actually gave out some signs to look for, before investing in cryptocurrency.
Some of the panels even asked the investors to study the cryptocurrency 1st and thereafter think about investing. Also, the experts warned the investors that if they were to invest in cryptocurrencies without proper research, the likelihood of the losing the entire capital is pretty high.
According to Grant Fondo, who is a partner at Goodwin Procter LLP, losing in cryptocurrencies is inevitable. However, once you are able to select the right cryptocurrencies to fill your portfolio with, it would be easier for you to erase the losses with the enormous profits which you would be able to make. Also, according to him it is a better idea to invest in somebody’s business rather than investing in an individual cryptocurrency. The sea back to cryptocurrencies is with solid business ideas.
Watch out for the blockchain scam:
According to some of the experts, it is necessary to keep away from companies which are falsely claiming to be associated with blockchain. Companies have figured out that by associating themselves with blockchain, they can increase their value significantly. This is the reason why investors need to be careful of staying away from such companies which are falsely associated with blockchain.
According to director of research at Qantas, Nolan Bauerei, investors need to get much more serious about cryptocurrencies as the easy way to make money is over.
According to him, it is important to back the cryptocurrencies which have a solid technological base and application in the creation. According to him, only if the investors are serious about investing in such cryptocurrencies, they have should actually come forward and research about the same.
It remains to be seen whether investors are able to heed this advice or still end up losing money in cryptocurrencies. For now, however, it seems like most of the investors are not that point on the cryptocurrency market as they were a year earlier. In many of the cases, cryptocurrency investors have actually invested at inflated prices which is giving them a nightmare currently as the price of most of the cryptocurrencies are down more than 50%. As a result, the advice comes a little late for most of the cryptocurrency investors.