The Highs and Lows of Cryptocurrency Investing

One of the biggest drawcards for the cryptocurrency market as an investment opportunity has been its openness and lack of prejudice. Anyone with access to the Internet can buy a crypto asset, and in most cases, see it grow exponentially.

It is investing like never before seen, breaking with a number of traditional norms, but despite this obvious advancement in exclusivity, there are still huge issues around this new and burgeoning investment market.

The dreaded regulation

Regulation is such a polarizing word in the cryptocurrency space. Some see it as necessary for the survival and mass uptake of cryptocurrency, while others see it as the antithesis of what cryptocurrencies are trying to be.

Having a controlling body does, of course, make a mockery of the inherent decentralization of cryptocurrencies, but it also adds a heap of protection and responsibility to it.

Currently, the regulatory space is miles behind which also means that investors have very little protection if things go wrong with their investment. And, because there is such a frenzy and hype in the crypto investment market at the moment, people are throwing huge sums into the space.

However, it is often said that these investments are a bit of a gamble, and not only because of the volatile price swings, but because things can still go wrong in the “Wild West” that is the cryptocurrency space.

Exchange hacks

With exchanges being the biggest medium of cryptocurrency movement, they become targets for hackers. Many have lost funds in apparent hacks of exchanges with little to no recourse because of the unregulated space.

Mt. Gox still sits as a huge precedent and pinnacle regarding the dangers of investing in cryptocurrency where billions of dollars of users’ money went missing in an apparent hack.

Turning tide

Of course, the investment space is not truly the same “Wild West” it was five to seven years ago, and in fact, it is improving exponentially as people educate themselves more once entering the space.

There is a balance between those who are entering the market purely because of the hype and a feeling of fomo, which leads to negatives for both those individuals and the market. These Fomo-buyers often end up in compromising positions which only leads to negative news.

However, there are those who enter the market with a level of education thanks to the growing subsidiary space. There is more than enough material out there for people to consume before entering the market, and thus, leave themselves protected.

There are even instances of companies making the transition to cryptocurrency that much easy, especially noted in the high profile launches from CME and CBOE. The futures options from these changes have made it possible for those who were either skeptical or unsure to enter the market and benefit in a regulated space.

The importance of ease

The inclusivity of the cryptocurrency market is all important, and with that, it needs to be safe and approachable for the success of this so-called digital currency revolution.

Wall Street and its snooty investment profile, full of ties and briefcases, no longer fits into the global narrative. The cryptocurrency ecosystem, however, is amorphous and open.