Various financial institutions and governments all across the whole world have already expressed their concerns regarding the cryptocurrency industry calling digital assets risky. Now some of the financial experts in Nigeria have also talked about the prevailing risks that are associated with the cryptocurrency trading. These experts warn investors to be careful while trading with cryptocurrencies saying it may involve some risks.
Investors are highly advised to have a clear understanding of these risks before they step into the world of cryptocurrency trading.
One of those Nigerian financial experts is Elelu-Bashir Mohammed who is the Nigeria Community Manager at Crypto.com. He has shed a light on some of the key risks that the cryptocurrency market carries. While expressing his concerns related to crypto risks in a note, he said that it is highly risky to invest in digital currencies despite knowing the fact that the cryptocurrency market is highly volatile in nature. Mohammed said that one should know how to manage these risks properly before stepping into it.
He emphasized on the point that it is crucial for beginner traders or investors to have a complete understanding of cryptocurrency and the technology that runs it. While highlighting risks, he said that the high level of volatility, lack of regulations, and illicit activities such as cyber theft are some of the critical issues that digital currencies are currently facing.
Another financial expert Tony Emeka who is the Chief Executive Officer (CEO) of CryptoTvplus also talks about risks involved in trading with cryptocurrencies. Emeka said that market manipulation is another risk that is associated with cryptocurrency trading. He is of the view that market manipulations are common in the cryptocurrency market even some of the digital currency exchanges are also suspected sometimes of manipulating markets. Emeka further added that the cryptocurrency market is not fully regulated and this is another risk associated with this industry. However, he also acknowledged on the other hand that crypto trading could be beneficial for investors as well.
The Head of Public Relations and Corporate Strategy at the cryptocurrency firm Buffalo Chase Ekene Ojieh also said that cryptocurrency trading is associated with some key dangers.