Many digital assets have a high volatility
Traditional valuation and analysis strategies cannot be applied to the majority of these assets because they are based on atypical and new fundamentals. Digital assets are therefore often very difficult for investors to assess. Making sustainable and profitable investment decisions is therefore associated with a very high risk without market knowledge.
The charts of Bitcoin show that the wrong timing of investment points can often lead to unpredictable price developments very quickly and at short notice. The buy and hold strategies often used and known by private investors should already contain simple basic principles like a averaged longterm portfolio construction.
Wide range of tokens
Bitcoin is the most valuable and well-known reference for blockchain based digital assets. However, Bitcoin is only one of thousands of these assets. Over the last 10 years, Bitcoin has been used in a wide variety of applications (Bitcoin has the task to transfer a digital value in a forgery-proof and decentralized way based on blockchain technology). Through this blockchain technology, various coins and tokens have been created with a wide range of applications.