Risk levels of cryptos - beginners guide

Hi all I thought it may be useful to share some guidance on the different risk levels of different types of cryptos for people who only started trading cryptos or want to get started but are not sure where and how. This is not an exhaustive list of types of cryptos but only some that crossed my mind, so please do add any others in the comment section below. I would say (and again please feel free to correct me), these types of crypto investments have following risks: Stablecoin farming Risk level: low Example: use your BUSD on Binance to farm other cryptos that are currently offered or get interest on your BUSD. Reward: low. Your BUSD will not change in value but you are getting a few % in other cryptos or interest on your BUSD as a return. Bitcoin/Ethereum Risk level: Medium Example: you buy and hold your Bitcoins/Ethereum and the market will do what it does. Both coins are well established and there is no risk of any rug pulls etc Reward: Medium. Bitcoin may hit $100k in this bullrun but also might have a major dip any time. If you are here to hold, the chances that you recover any potential losses at the next bullrun is nearly guaranteed as the next bullrun is extremely likely to have yet again a new ath. Altcoins Risk level: High Example: you buy cryptos that have solid fundamentals and a promising future. You read the Whitepaper and believe they will find the place in the crypto world. I don't want to give any examples as this is not a shilling post but there are plenty of projects that are amazing and have their utility. Reward: high, if you find an altcoin at the early stages and it establishes itself in the crypto world, you can expect some serious returns on your investment. Even once established, altcoins can grow further and give you high returns. Shitcoins/Moonshots Risk level: Extremely High Example: you buy shitcoins that have zero utility but hope that they are going to the moon simply because others buy them as well. Reward: Extremely high if bought before the hype starts. You can still make some high returns in the early stages but all shitcoins will eventually reach their ath and slowly die. Please feel free to add other types of cryptos or start hating below. submitted by /u/LetsGoToTheMars [link] [comments]