Crypto Navigation : Fundamental Values & Risks
Navigating crypto markets involves inherent risks, amplified during bubble phases. Bubbles inflate prices rapidly, detached from fundamental value, fueled by speculation and hype. This creates volatility, with potential for dramatic crashes.
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Key risks include:
– Financial Loss: Buying high, selling low during a crash leads to significant losses.
– Leverage: Amplifies both gains and losses.
– Market Volatility: Extreme price swings increase risk.
– Influencer Hype: Endorsements can mislead investors.
– Lack of Regulation: Increases the potential for fraud.