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“Faster” is a multiplier on the risk they are taking. It’s one thing to risk where you may only lose 5% to 10% more money if you take an extra day or two to dec
by techdragon 5y ago
“Faster” is a multiplier on the risk they are taking. It’s one thing to risk where you may only lose 5% to 10% more money if you take an extra day or two to decide if you should sell. With cryptocurrencies you may have lost 25% to 50% or even 100% for the smallest and most volatile currencies or even by forces outside of your control if you start investing in smart contracts and someone finds a flaw and exploits it to drain the money away.
These all happen at a speed that can take even seasoned crypto investors by surprise from time to time. Sometimes you only have a matter of hours to get your money out before an entire currency becomes worthless.
It sounds like you understand the nature of these as risks and are sensible about it but from what I’ve seen in my interactions with people who are starting to look at it now it’s starting to get widespread with some companies now advertising to “normal people”. These people are learning about it entirely from the PR coming from crypto trading sites that want to turn them into profitable users, their view of the risks is deeply flawed, sanitised for the benefit of the companies that want their business.