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Olom Godspower Jones Talks risks associated with trading digital assets

In today’s world, it’s no longer news to say cryptos are now one of the game changers in today’s financial system.

With the innovation of ATMs for transacting in cryptos globally, including some in Nigeria showing its importance in today’s society.

The digital crypto market which is now said to be worth over $400 billion and has a trading volume of about $39 billion. These benchmark reveal how much capital global investors are pumping into a market less than two decades old.

With this statistics, it is important to pen down that crypto carries certain risks, Amongst other financial assets. Hence, it’s advisable for viewer to understand such threat before venturing into the world’s arguably most interesting financial asset.

With Information of some exchange been hacked and large amounts of money lost due to crypto-related hacking incidents. In 2020, over $1.4billion has been stolen so far. In Recent Years. the Kucoin exchange was hacked and over $100m worth of tokens were taken.

In the Volatile Market when exchanges are hacked, traders and investors’ assets are safe. Although, not a good remark for the new industry.

Therefore Olom Godspower Jones One of Nigeria Blockchain Enthusiast in a note, spoke on key risks prevalent in the crypto market.

“Investing in the high volatile cryptocurrency market is a risky undertaking and one needs to learn about proper risk management before venturing in.

“New traders/investors who want to venture into cryptocurrency today need to understand what cryptocurrency and the technology behind it is all about.

“Some of the problems facing cryptocurrencies today are; cyber theft, high volatility, as well as a lack of clear regulation/government interference. New traders need to be less greedy and knowledgeable about the use of various technical analysis tools.  

“Lastly, every new trader needs to invest only what they can afford to lose as there is no guarantee of minimum profitability or break-even on investments. 

“Trading in cryptos has a high volatility rate and not perfect for traders because it generates high levels of uncertainty, coupled with the bias that it gives crypto traders less time to react.”

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