Cryptocurrency is volatile but potentially lucrative. Understand the risks before investing significant money.
What is Cryptocurrency?
Digital currency secured by cryptography. Bitcoin is the largest. Ethereum enables smart contracts. Thousands of altcoins exist.
Key Risks:
- • Extreme volatility
- • Regulatory uncertainty
- • Security risks (hacking, loss)
- • Market manipulation
- • Technology risks
Investment Strategy
Only invest what you can afford to lose. Start small (5-10% of portfolio). Use dollar-cost averaging. Store securely. Understand tax implications.