Updated: Jun 11
May was a volatile month for cryptos with many of them breaking their support levels. This report covers the market performance of these digital currencies in general, along with a special outlook and performance of thespecific coins below:
The risks of trading cryptocurrencies are mainly related to its volatility. They are high-risk and speculative, and it is important that you understand the risks before you start trading.
They are volatile: unexpected changes in market sentiment can lead to sharp and sudden moves in price.
They are unregulated: cryptocurrencies are currently unregulated by both governments and central banks. However, recently they have started to attract more attention. For example, there are questions about whether to classify them as a commodity or a virtual currency
They are susceptible to error and hacking: there is no perfect way to prevent technical glitches, human error or hacking.
They can be affected by forks or discontinuation: cryptocurrency trading carries additional risks such as hard forks or discontinuation. You should familiarise yourself with these risks before trading these products. When a hard fork occurs, there may be substantial price volatility around the event, and we may suspend trading throughout if we do not have reliable prices from the underlying market.
As investors become more interested in cryptocurrencies, financial advisors are feeling a new urgency to offer the investments to clients.
A Financial Planning Association and the Journal of Financial Planning survey found about 49% of advisors said clients have asked about cryptocurrencies in the past six months, up from 17% in 2020.
26% of advisors plan to increase how much they use and recommend cryptocurrencies in the next 12 months, compared to 14% who do so now, according to the survey.
For more info check out this CNBC Article on Crypto's Trending Popularity