Finance

About the risks of trust management of cryptocurrencies

Editor

If you read cryptocurrency news, you know that cryptocurrencies are an attractive investment vehicle today. Digital assets have taken a place of honor in the portfolios of both private investors and institutional investors, along with stocks, bonds, precious metals and fiat.

World economic indicators: About the risks of trust management of cryptocurrencies

Risks are always present. Here, it is a question of managing these risks. One has labor, reputation, and investment income. When you choose a certain investment instrument, you should clearly understand all the features of that instrument.

World economy news: There are more risks in the cryptosphere than in traditional finance

If you follow crypto news, you know that the most typical are market risks, such as volatility. Or legal risks. Today no one knows until the end how cryptocurrencies will be regulated. These processes are in constant evolution.

If you do trust your money to management, you should at least choose your contractors carefully. As noted above, there are a huge number of fraudsters in this area. However, there are private organizations that not only didn’t bankrupt their clients, but also fulfilled their promises and increased their capital.

What criteria should be used to select applicants? The importance сryptocurrency news

Trading crypto-assets is not much different from trading on the stock exchange – stocks, but rather even currency. You need to choose professional, trustworthy managers who know what they are doing and have already shown some results from investing.

When we give funds to management, we look at the main figures of the manager. It is also important to track US economic indicators to choose a good time to invest. Consider the percentage of risk, percentage of profitability, the time during which the manager acts successfully, the maximum level of drawdown, etc.

  • Stability — the most important of all indicators. All these figures show the investment system of the manager and, importantly, the control over emotions. Read weekly world news.

  • Try to provide yourself with data about the person to whom you transfer the cryptocurrency.

  • It is definitely worth doing basic due diligence: look at the company’s website, legal address (how realistic it is), find previous company names, read reviews.

  • If you think that you are caught in the net of scammers, it is worth contacting a lawyer.

The regulation of cryptocurrencies, almost in all developed jurisdictions, implies mandatory AML/KYC procedures; it is worth paying attention to the company’s own certified specialists in this field. World economic indicators are also important.

Conclusions

Experience in the market, reputation and trust rating, volume of assets, licenses, professionalism of the team, and publicity of its members, for example in social networks or media, are important. Reliable funds are always mentioned in world economy news.