How to invest in cryptocurrency and what are the risks involved?

Dear Anonymous,

It's great that you are considering the risks of cryptocurrencies before considering them as an investment.

There are a number of risks involved for sure - such as high volatility, susceptible to media/negative sentiment, but in the long run I belive that the rewards for investing in cryptocurrencies today, far outweigh its risks. After all, all investments carry some form of risk / opportunity costs. At the end of the day, its all about the potential risk : reward!

Do check out my website Everything About Bitcoin. I have written a section on the risks of crypto, there are many other sections as well, like What is Bitcoin, the future of Bitcoin, and how to safely invest in it.

https://www.everythingaboutbitcoin.com/bitcoin-...

Hi, cryptocurrencies are often stored in online cryptocurrency wallets. You can register on one of many online websites to create your wallet, and then purchase the cryptocurrencies and store them in that wallet. Example include coinbase, blockchain, bitpay, gemini, etc. Find one that suits your needs.

One of the well-known risks of cryptocurrency is its volatility. So before you purchase cryptos, do consider if you can bear to see your investment swing high and low within a span of days. Take the recent bitcoin (BTC) rise to about $40k+ USD, and then a precipitous drop just days after.

Another risk of cryptocurrencies is that because they aren't regulated by financial institutions - there isn't really anything stopping the crypto's value from crashing entirely, causing you to lose whatever you invested. Of course, this is likely more applicable to alternative and minority cryptocurrencies which may not be as reputed as bitcoin, ethereum, cardano, etc.

Hope this helps!