An investment per se is a risky business regardless of the target assets. A chosen strategy is the main thing, AMarkets Analytics Director Artem Deev told Invest Foresight.
A wish to make big money within little time entails a risk of losing everything altogether, since investors, when looking for greatest revenues, buy high yield assets which may often turn out to be bubbles. In 2020, for instance, there were assets in the DeFi market which could grew tenfold within a few months or even weeks. Yet their collapse was also instantaneous. Therefore only most experienced crypto traders managed to make sizeable profit by having sold their digital assets at the right moment.
A conservative strategy is aimed at protecting capital and reasonably expanding it, rather than at making maximum profits. The followers of this strategy mainly invest in Bitcoins. At the moment though it’s time to make a decision whether one should sell out Bitcoins which are likely to collapse in the nearest future, or wait for some more time in order to acquire more coins at a bottom price. Bitcoin will eventually resume its growth and may gain substantial value and reach $40K or even $50K, Artem Deev believes.
“In any case, there are no assets available in the market of crypto currencies, which are truly secure,” he says. “Digital currencies are highly volatile. In the current environment even most conservative investments in gold and US dollars bear risks of losing value. Digital assets therefore require good market knowledge and investment skills.”