Nitin Kamath is a well-known name when it comes to finances or stock. He is the founder and CEO of Zerodha, India’s very own union contender of a startup that not only was entirely bootstrapped but is also profitable and making a name for itself.
Now, being a guy who owns an online stock brokerage firm, he comes forward saying that Crypto is volatile and risky. Well! He has been in the deep waters of the stock exchange and certainly knows what he is saying.
Moreover, his complete statement on the subject comes over his Twitter post says ” Watching famous personalities with huge fan followings trying to trigger their fans or retail investors to invest in super risky asset classes without talking about the risks, or caring about the risk profile of those who follow them is quite disgusting. 1/2″
What Does Nitin Kamath Meant When Saying Crypto Is Risky?
Well! That would not be a fair presumption. He is saying that Crypto is gaining widespread attention and all the limelight without coming out with the dark side of the Crypto.
While Crypto is shown as the next gold pot you can grab, nobody mentions the downside. While in the case of trading stocks, they tell you all that in the form of a disclaimer or something similar.
Moreover, the lack of knowledge in the domain of Crypto has given rise to the cases of fraudulent activities, which is a significant downfall of only promoting the good sides and not the bad. After all, trading is a pretty volatile segment.
Most people who go and lose their money don’t have a single piece of knowledge about how an IPO or ICO works. A rich overall understanding is essential in investing in a volatile market.
To give you an example, would you buy a house that looks good from the outside and have a garden but has nothing on the inside? Well! Presuming that your answer would be a ‘No!’, we say that Nitin Kamath has got the point.
Also Read: Scam of INR 1,200 Crore Uncovered In The Name Of a Fake ICO
How To Deal With Information Related To Crypto?
The first and foremost thing is to check the source from where the information is coming out. The next would be to check with someone that has a good knowledge of the domain, and the third is to use some common sense; if it sounds too good to be true, it isn’t.
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