So you’re excited to jump on the crypto wagon, perhaps because you expect a gigantic return (profit) on your investment. That’s basically the reward for investing. However, you can’t consider return without also looking at risk. Risk is the uncertainty surrounding the actual return you generate.
In my investment education courses, I spend a lot of time speaking about risk and how everyone should approach it individually. What may represent high risk for me may not be as risky for you due to our unique lifestyles and financial circumstances.
Cryptocurrencies have shown their fair share of volatility, which has made some investors millions of dollars while wiping out some others’ initial investment. In this chapter, I look at cryptocurrencies’ price volatility from 2017 to 2018. I also define cryptocurrency rewards and risk, describe different types of risk, and give you pointers on managing risk.