The’coin craze’ is back. Bitcoin, which had gone up to 6 million won at this time a year ago, has soared to 60 million won, and individual investors are coming again. The most difficult thing for those who are new to cryptocurrency is’lack of information’. You cannot view financial statements like listed companies, and when you open a professional book, it is full of complex technical terms. When I see the news that it has hit the highest price again, I get impatient, and when I see the price fluctuating at a word from a celebrity, I am afraid.
This is why the Korea Economic Daily prepared the first Korean economic magazine to prepare the’Encyclopedia of Cryptocurrency Investments’. The concept of the coin, the basis of optimism and pessimism, and the points of spectating that will determine the direction of the price are introduced on seven pages. I am not recommending “buy coins”. As one of the new investment destinations, it is to present the criteria for judgment to those who are interested in cryptocurrency. First, I heard from industry experts the’basic principles of cryptocurrency investment’.
If it’s your first time, just buy bitcoin
Over 8,000 types of cryptocurrencies have been developed on the market, but the’signboarder’ is bitcoin as it used to be. Most experts predict that it will continue to do so in the future. As of the 21st, the market capitalization of Bitcoin was $1,073 trillion, accounting for 60.2% of the total market capitalization of cryptocurrencies. “If this is your first time investing in cryptocurrency, start with Bitcoin.” Korean investors have a strong preference for’altcoins (collectively, all cryptocurrencies except Bitcoin)’, but it is a warning that it is dangerous for beginners. He said, “If Bitcoin is a new drug that has been approved by the US Food and Drug Administration (FDA), the rest of the coins can be considered in the first phase of clinical trials.” Overseas institutional investors who buy cryptocurrency also contain only bitcoin.
Not a short hit, a long throw, not a neck money, but a little money
Jun-woo Kim, CEO of Cross Angle, who runs the cryptocurrency information site’Jangle’, said, “If you look at the bitcoin price for 10 years, it has gone through a sharp fluctuation in the middle and upwards.” “Approach it with’investment (investment)’,” he advised. Bitcoin’s volatility is lower than in the past, but the annual amplitude is still in the range of ±60~80%. The method of accumulating a small amount daily, weekly, or monthly instead of putting in a large amount of money at once is one of the’risk variance methods’ recommended by cryptocurrency exchange officials.
Prohibition of confiscation! Only as part of a portfolio
On the 17th, Morgan Stanley of the United States allowed wealth management service users to invest a certain amount in a fund containing bitcoin. The most eye-catching feature is the’upper limit’ of Morgan Stanley. The share of bitcoin investment is limited to no more than a maximum of 2.5% of all assets. For example, an investor who’snapped’ 100% of the money he has in bitcoin suffers a loss when the value of bitcoin falls. However, if only 2.5% is included in bitcoin, the impact of the decline is reduced to 1 in 40. Park Sang-hyun, a researcher at Hi Investment & Securities, emphasized, “Investing in bitcoin should be approached from the perspective of a portfolio (distribution of investment destinations).
‘Study’ is needed rather than’chuck’
The cryptocurrency exchange app is modeled after the stock exchange system (MTS), so it looks similar. Heo Baek-young, CEO of Bithumb, said, “Because cryptocurrency is a’digital asset,’ it has its own characteristics. You must study basic trading, storage, and management methods to avoid accidental loss.” If you do not understand the concept of a’wallet’ that holds coins, it is difficult to move or cash in your own coins.
No one protects you
If you want high returns, you have to take high risk. Hong Ki-hoon, professor of business administration at Hongik University, said, “Analysis of the daily price flow shows that cryptocurrency has 4 to 5 times higher investment risk than the KOSDAQ market.” This means that it is a market with volatility that goes beyond small caps (small stocks).
Lee Seok-woo, CEO of Dounamu, said in an interview earlier this year, “If a careful understanding of the product is premised, cryptocurrency is well worth a long-term investment. I have to do it.”
Reporters Hyunwoo Lim/Jinwoo Park/Hyunah Oh [email protected]