Hidden risks when investing in crypto and stocks markets

Whether we see it or believe it, there are hidden risks when investing in crypto and stocks markets which can transform something appealing extraordinary into total failure. I believe that most of us experienced the downfall of our investments, thus is well to consider new factors when investing in the future. Learning from past mistakes and also considering new parameters might put us in a better spot with our choosing. Next I intend to explore some of the variables that we can take into equation when it comes to invest in either stocks or cryptocurrencies.

Higher government regulations, including increased or even new taxes

Honestly, with the way governments are cracking down, I feel like they could change the rules on us overnight. New or higher taxes or regulations are popping up all over the place as governments tapped into a new revenue stream. With all these new laws, investing in crypto and stocks is starting to feel like the government’s playground. But we can only push forward, be early to innovative projects, earn more and pay our dues out of that.

Political strategies or camouflaged interest

Nowadays it seems like every time a politician has a hidden agenda from lobbyist or own interest and the markets react like crazy to any news thrown in the space. The markets feel like a pawn in political games, and as a small investor, I’m always worried about being the last to know. Just last week I've experienced in my country the government trying to restrict the stocks rebuy options of a company it held stocks which affected greatly its price. After two days the decision was reverted and the stock rise again. Who own from this? Only those that new these movements.

Disputes, including wars

Wars and conflicts have completely disrupted the markets, and there's no way to predict when another one will break out. It’s like walking through a minefield. Just the rumor or talk about is sending stocks and crypto prices crashing. It’s hard to plan when the world feels so unstable and we see that there are no more rules in the world.

Users and customer shifts, determined by surrounding factors

These can be justified from different values that individuals believe in and can be either one from political: more extreme, nationalistic; environmental: emissions, climate; financial: own gains disregarding everything else; behavioral or attitudinal: panic, hoard following.

Security hacks, breaches of data, hacks, scams

It’s crazy how often you hear about someone losing their entire crypto wallet to a hack. There are even sites now tracking hacks in the crypto space or pump and dumps on useless stocks. Crypto and even stock markets feel like the Wild West with all these scams. One wrong click or decision, and you’re done for — it’s hard to trust anything, even hard numbers.

These are some of the hidden risks of our days and the world context when it comes to investing in crypto and stocks market. It is not enough to have a solid project if the world around it had gone crazy. New variables need to be factored in to be able to have a sound investment. I am trying to think of what's happening in the world and how that affects a business and project, while trying also to anticipate what can happen next.

Posted Using InLeo Alpha