Crypto Tumble: Anil Singhvi signals caution for cryptocurrency traders, says no comparison with stock market and gold investment

Amid Crypto tumble, Zee Business Managing Editor Anil Singhvi in a special edition of Editor’s Take said it would be completely unfair to compare investing in cryptocurrency to that of the stock market and in gold. He went on to explain why cryptocurrency is a high-risk aversion kind of investment. 

The market guru said, “Cryptocurrency has no comparison to the stock market and gold investment, these both are solid investment approach asset class, which has been running for ages, unlike the crypto and it’s bad to make a comparison between two.” 

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Singhvi said, people who have traditionally studied the investment would never go for cryptocurrency as the investment is done on the basis of asset class’ temperament and the way it functions. 

Those investing in cryptocurrency are a different kind of people with a varied mindset, who has a huge risk appetite and can face a loss or profit of around 25-50 per cent in a day, says Singhvi.  

It’s quite unbelievable and difficult to consider a currency that fluctuates around 30-40 per cent in a day, as this is not a characteristic of a currency so far known over a period of time, Singhvi adds 

He said investing ins crypto is like playing a lottery, the only difference is in the former the money is not completely wiped out but latter doesn’t guarantee you anything.  

The whole foundation of this cryptocurrency is based on people’s acceptance, this acceptance is not from traders, but will the big players accept it, says Singhvi, adding further, Elon Musk like people too has been changing their statements in a week or two’s time regarding cryptocurrency. 

The market guru advises, if a one-man or a government is aiding the volatility of a commodity like a cryptocurrency then it’s needed to be little cautious. 

He further said the governments across the world have been losing confidence in cryptocurrency one after other. Yesterday, China banned it, even Europe hinted the same, and in India, it is not yet legal. 

Wishing the best for the cryptocurrency investors and hoping them to earn returns, Singhvi said, it is a high-risk kind of trade, wherein the capital may get completely wiped out. 

Before concluding he advised investors/traders to invest in what you have an understanding of and has confidence within it, and last but not least know the process of entry/exit along with risk-reward.