express– Cryptocurrencies such as DOGE and SafeMoon have pulled people’s focus this year, with movement behind them spiking growth beyond those of established tokens. DOGE, in particular, has grown by more than 4,000 percent, besting even Bitcoin, which has had a tumultuous year so far. With people now able to pick up far cheaper coins, new investors have poured into the market, but they may not be acquainted with the high-energy environment.
How can new investors break into the cryptocurrency market?
While Bitcoin and Ethereum can prove lucrative investments, they are ultimately at the mercy of the market’s inherent volatility.
People may pump tens of thousands of pounds into one token and find they lose thousands from a dip days later.
Altcoins provide a way in for many people, but they come with their own set of risks.
Curtis Ting, Managing Director EMEA at Kraken Europe’s largest crypto exchange by trading volume, set out ways for new investors to make sense of the environment.
Speaking to Express.co.uk, he acknowledged how “daunting” the cryptocurrency market may appear at first.
But he explained education could provide them with some even footing.
Mr Ting said: “Everyone has the right to make their own investment decisions, based on their own personal preferences and circumstances.”
Having said that, the cryptocurrency space can be a daunting prospect for new investors.
“We recommend that anyone looking to purchase a crypto asset for the first time learns a little bit about what they’re buying.”
Mr Ting said people should turn to “reputable exchanges” with “strong track records” to start learning.
He added first-time and veteran investors will find use from these resources, with the latter able to effectively “expand their investment portfolio.”
Aside from education, Mr Ting also recommended people look into security.
Platforms will have different processes behind trading arrangements, so new investors should give their chosen provider a good vetting.
Mr Ting said: “Investors should also ensure that the platforms they trade on use a robust asset selection process that includes proper analysis and vetting, rigorous compliance, legal, and security reviews.
“This filters out crypto assets that are either poorly designed or possible scams, ensuring that any asset that ends up on the exchange is safe for anyone to trade it.”
Recent interest in cryptocurrencies will have inspired some cryptocurrency scammers in the UK.
Experts recommend people don’t hand over money unless they fully understand their proposed investment.
Otherwise, they may end up on the other side of a fake Initial Coin Offering (ICO), which seeks to “pump and dump” new tokens.
Other scams include fake website links used to install malware on people’s computers.
