Cryptocurrency can be one of the more complicated things to get into. Understanding which digital asset is about to enjoy a bullish run or which blockchain is the best platform to develop an application can be complex. The crypto market is accompanied by a myriad of challenges and drawbacks and investors have to be certain about a coin before they decide to invest. Looking at Bitcoin (BTC), Ethereum (ETH), and Dogetti (DETI) as examples, we’ll use this article to weigh up the advantages and disadvantages of investing in cryptocurrency in 2023.
What Are The Major Risks Of Buying Crypto?
The major risk associated with buying crypto is volatility. The value of a coin can fluctuate wildly in a very short space of time. This means investment can appear speculative as there is no guarantee that the crypto being bought will always be trading profitably for investors. Whilst this volatility can generate high returns, it can also lead the way to significant losses.
Sometimes this can be triggered by unexpected events.
The year 2023 has been something of a difficult grieving process for the cryptocurrency market after the FTX crash. This triggered a domino effect as Silvergate Capital, a crypto-focused bank, was followed by banks specialising in digital currency in announcing the closure of its operations. This led to the crypto market bleeding heavily as even the two biggest cryptocurrencies, Bitcoin and Ethereum, began trading bearishly as investors lost confidence.
Another risk that comes with cryptocurrency is the potential for hacking. Because cryptocurrency transactions are irreversible, it can be difficult to recover funds if they are stolen. Additionally, if you lose your private key or forget your password, you may not be able to access your funds. The threat of hacking is particularly prominent; a report published last year by the United Nations found that billions of dollars had been stolen from crypto-related businesses by cybercriminals.
Cryptocurrency Brings With It Potential For Many Rewards
Cryptocurrency does however generate incredibly promising rewards when everything falls into place together. Bitcoin and Ethereum are prime examples of that. Bitcoin might have started off as worth just a few cents but it is now worth over $28,000 per coin with a market cap of around $548bn.
The rewards aren’t just about filling your pockets immediately either. Blockchain technology has been revolutionary in how it has allowed applications to be developed using them. Ethereum has led the way on this and has cultivated a reputation of high trust and reliability amongst developers. On top of that, the Ether token is a very lucrative investment for crypto traders, as it’s currently selling for around $1,838 on the market.
And though, as mentioned previously, this is not a solid indication of the future, Bitcoin and Ethereum underline the resilience of the cryptocurrency market. Prices can crash, but they often recover too.
Cryptos Like Dogetti Can Make You A Real Stakeholder
An issue with the financial market, in general, today is that it is controlled by governments or financial institutions, it’s not beholden to customers. There are, however, many crypto coins that are accountable and rooted in those who use their services. Dogetti is an example of that. Known as a meme coin, it establishes humour and mafia tropes to build a tight-knit community that sustains it.
Dogetti’s unique selling point is that its ecosystem embeds investors into the platform and ensures they have both a stake and a voice in the coin. This can involve ensuring that all who hold DETI tokens receive some earnings from a 6% tax on all transactions on Dogetti’s NFT Marketplace. It can also mean entrenching the representation of DETI members into the decision-making process of the platform through the DogettiDAO feature.
Dogetti (DETI)
Presale: https://dogetti.io/how-to-buy
Website: https://dogetti.io/
Telegram: https://t.me/Dogetti
Twitter: https://twitter.com/_Dogetti_
