[Taklimakan Blog] What You Need to Know before Buying Cryptocurrencies?

Experts named market features that must be considered before investing in crypto assets

Cryptocurrencies are highly volatile and have technological properties that are not inherent in conventional assets.

What caused the high volatility?

A young market is always more volatile than a mature and time-tested one, explained director of the financial company Newcent. According to him, regulators prohibit large players (such as government funds and conservative investors) from trading cryptocurrencies, so the market is not yet liquid enough.

The exchange rate of many fiat currencies depends on the quotations of natural resources mined in the country since they constitute a significant part of exports, and virtual coins are not tied to tangible values, so their value is quite difficult to understand for an ordinary layman, the expert noted.

High volatility can be attributed to both negative and positive properties, since this factor is used by traders to obtain high returns.