Ted Bauman Explains the Dangers of Cryptocurrencies

Ted Bauman is an experienced investor. He explains that there are three categories of investors. The first is the educated investor, who knows what he or she is doing and follows a strategy that is smart and does not present large risks. The second is the gambler kind of investor, who takes risks, but like a gambler, knows that it is a risk and does it in a calculated fashion if he or she can afford to lose the money. Finally, there is the kind of investor that is simply desperate. He or she jumps into things because they need money fast.

Ted Bauman further explains that those who fall into the last category often go into cryptocurrencies.

Lately, there has been a lot of talk about Bitcoin and other cryptocurrencies. Bitcoin has been rising steadily. Another cryptocurrency that people have been paying attention to is Ether. Ether recently became almost thirty percent of the cryptocurrency industry, although it soon dropped. This is despite the fact that Ether has a value that is a lot less than Bitcoin. Although that is true, there is a lot more Ether around than Bitcoin.

Ether is part of Ethereum. It benefited greatly when it came out with its ICO. ICO stands for Initial Coin Offering, which is what investors use to describe the funding process for new cryptocurrencies when they launch. It is similar to the IPO system in the stock market, when you can get stock in a company at the beginning. However, when it comes to an ICO, you do not actually get stock in the company, only a promise that you will be able to have coins by trading in tokens.

When Ether came out with its ICO, it was worth only $0.40. Now, however, it is worth $175, though the price keeps on fluctuating. People who bought Ether when it only cost $0.40 are now very happy. However, people who bought Ether when it jumped up just before it crashed back down, when it cost nearly $400, are probably feeling very foolish.

There are currently around 20 ICOs every month. People who are desperate are sinking money in the ICOs in order to potentially make money. However, most of them get disappointed.

Ted Bauman is the editor of The Bauman letter. He is a journalist with Banyan Hill publishing. He is an experienced investor.

Check more: https://banyanhill.com/expert/ted-bauman/

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