Different level of risk in crypto currency trading
Different level of risk in crypto currency trading
Hi,
I have some experience in crypto trading (far from being a master though).
One question I came across is if there are different level of risks for different cryptos? I know that generally cryptos are like stocks, ie you only can lose what you invest; but obviously there are financial products to deal with leverage etc.
But if we take a simple example: If I just would like to buy some (simple) CEL shares for 1000 $, this would be the maximum I could lose right?
The reason I am asking is that for some COINS, on coingecko there is a disclamer saying ‘Highly volatile investment product. Your capital is at risk.’ (which is a banner sponsored by etoro, but it doesnt appear at all cryptos…)
I understand that with speculative cryptos you can lose part of or all of your investment, but is the risk limited to the amount i laid out? When I was trying to buy a similar crpto on binance they displayed some warning as well which confused me quite a lot…
If anyone could shed some light on this that would be appreciated.
There is no place legally able to ask for more from you, in places like robinhood which deals with real stocks and margin trading and leverages, they do ask more from you, you could spend more than you invested in robin hood and in other stock market places, you basically take out a debt for investment and not really to yourself so that makes things easier, in the end company only buys stocks and they ask the difference from you instead, and not really put money into your bank account.
So, stock market has what you are afraid of. However in crypto world people do not give their details everywhere, some places ask for your KYC but as long as you do not share your KYC they can’t know who you are and that is why they can’t charge you anything more than what you put in there.