Crypto’s evolution adds new risks to potential rewards

by Lalithaa

Regulators have been warning retail investors. This started as they started to enter specialist fields like lending, staking, and borrowing.

Damian Mitchell, the currency trader is having city experience of over 2 decades. He got some advice from his son who asked him to check out Bitcoin. But he believed that this digital asset is not a credible thing. Later his mind changed. Now he is not only involved in buying or selling popular tokens like Bitcoin but also in the making of returns in double-digit from a quickly growing specialized market by borrowing and lending crypto. His son still keeps on reminding him where this idea came from. Thus he has combined pleasure with his latest crypto passion. Also, people can start learning about Bitcoin by using cryptoprofit, unlike before online trading has become so popular that everyone wants to try it.

Cryptos already exploded into a market of $2tn and many investors are owning few forms of such digital currencies. The price of cryptos always remains highly volatile. Regulators continuously keep on issuing warnings regarding crypto dangers. Yet personal saver gets involved in this crypto market such as in the UK. Similar to Damian Mitchell, many go beyond only buying or holding in the long term or HODLing to make use of the jargon of the crypto sector. They have begun to move into a huge range of tokens such as NFTs that are popular in the world of art. They are also learning about generating income from the crypto assets that usually never offer a return in dividend type. Such activities are frequently complex. They can be very risky and are mostly not protected by all regulators. Yet as cryptos move and become a part of the mainstream investment, each opportunity to experiment with such techniques of moneymaking is increasingly becoming common that too among some retail investors. 

What is happening globally?

  • Critics of crypto see such development as yet a huge evidence of some bubble that is going to burst. Last month a member of the European Central Bank’s executive board, Fabio Panetta compared digital currencies with a scheme of Ponzi. Evangelists of crypto have promised a huge thing. They made use of one illusory narrative of the always rising prices of crypto for maintaining inflows. Thus all momentum speeds the bubble of crypto. This was said by Fabio Panetta in a speech that was widely reported.
  • Many regulators such as the Financial Conduct Authority of the UK too are concerned about the risks related to crypto. Nikhil Rathi, chief executive of FCA last month mentioned that as they have been consistently warning, if people invest in this digital asset, they must be ready to lose all their money.
  • Yet due to all worldwide enthusiasm for crypto showing some fading signs, all watchdogs are facing challenges to carry on. When domestically tough rules are being tried to impose like the FCA, often operators function from different countries and they lure clients into some offshore transactions.

New opportunities with the emergence of new markets

  • In 2014, when Damian Mitchell’s son provided him that advice to whom he was not agreeing to at first, some people dipped into Bitcoin.
  • By 2017, investors began to notice, as the digital token’s price increased.
  • Retail savers worldwide suffered from the serious issue of FOMO which is the fear of missing out.
  • One of them was Damian Mitchell.
  • Since 1980, Mitchell is a trader who built his career on inefficiencies profiting in the market of currency as they started to migrate to some electronic platforms.
  • He was very successful. After working for some renowned commercial banks, he created his proprietary trading company which operates still today.
  • After he invested in digital currencies via one specialist hedge fund, he made up his mind to start experimenting with hands-on trading.
  • He was very curious to only sit by and allow others to navigate all highs or lows of the very volatile cryptocurrency market.
  • Soon he realized that cryptocurrency is completely similar to that currency trading having many opportunities.
  • He always loved his career and he was passionate about it. Thus it was very easy to start with crypto and do good with it.
  • Regardless of if it is staking, borrowing, or lending in NFTs, there has always been something new in this digital asset that always excited him.


Always remember that crypto investment comes with huge risks. So it is very essential to have thorough research done and wisely invest.

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