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Here’s what you need to know before investing in cryptocurrencies
One of the characteristics we have been accustomed to when it comes to cryptocurrency is high volatility. However, we have seen more and more institutional investors buying into this investment. On today’s Crypto Corner, we will be having a conversation on the investment principles that you should consider when investing on the crypto market. Tino Mombo, Actuarial Analyst at Novare Actuaries & Consultants joins CNBC Africa for more.
Fri, 18 Jun 2021 16:30:25 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Investors must differentiate between short-term profit-seeking and long-term stability when participating in the cryptocurrency market.
- Starting with established blockchain projects and gradually diversifying into new ventures can help mitigate risks and optimize investment returns.
- Thorough due diligence and risk assessment are crucial for minimizing potential losses in the volatile crypto market.
The cryptocurrency market has long been synonymous with high volatility, attracting both short-term and long-term investors seeking to capitalize on the potential for significant returns. In recent years, institutional investors have increasingly entered this space, prompting a discussion on the investment principles necessary to navigate the complexities of the crypto market. Tino Mombo, an Actuarial Analyst at Novare Actuaries & Consultants, sheds light on the essential considerations for individuals looking to invest in cryptocurrencies. One of the primary factors investors must bear in mind is the stark contrast between short-term gains and long-term stability. Mombo highlights the importance of understanding the risks associated with the market, emphasizing the need for a comprehensive grasp of blockchain technology and established projects before committing substantial capital. He advises starting with well-established blockchain projects before diversifying into more speculative ventures to manage risk efficiently. Furthermore, Mombo stresses the significance of conducting thorough due diligence on potential investments to mitigate the inherent risks prevalent in the volatile crypto landscape.
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