David Schwartz, Ripple’s chief technology officer, has advised investors and crypto traders to consider outsourcing some amounts of their crypto holdings to reduce risk. The crypto leader recently warned on Twitter.
“This will probably be my least popular tweet, however, if you have life changing amounts of cryptocurrency please take some time to seriously think about selling some to reduce your risk and exposure. This is not a prediction of what the market will do, ”his tweet explained.
READ: Billionaire Investors In Nigeria You May Not Know
This will probably be my least popular tweet, however: if you have life changing amounts of cryptocurrency, please take some time to seriously think about selling some to reduce your risk and exposure. This is not a prediction of what the market will do.
– @ “𝘑𝘰𝘦𝘭𝘒𝘢𝘵𝘻” 𝘚𝘤𝘩𝘸𝘢𝘳𝘵𝘻 (@JoelKatz) April 13, 2021
To believe his advice, about $ 1.39 billion has been arbitrarily liquidated in the crypto market, with about 240,759 traders being liquidated.
The largest single resolution order was placed for Huobi-XRP, valued at $ 11.69 million.
Despite the recent decline in some trending crypto assets, some crypto traders remain optimistic that crypto assets are the best tools to hedge against rising inflation, offer better returns than many traditional assets, and will attract the attention of the corporate world.
READ: US Takes Action Against Abuse Of Cryptocurrencies To Use New Financial Technologies
Many weeks ago, the Financial Conduct Authority, a leading UK financial regulator, issued a strict notice on the risk of trading crypto assets.
The statement highlighted the risks associated with investing in Bitcoin and other crypto assets and warned the public that there are high chances that all of their funds could be lost.
READ: List of Disliked Cryptos Likely to Outperform
“The FCA is aware that some companies offer investments in crypto assets or loans or investments related to crypto assets that promise high returns.
Investing in crypto assets or related investments and loans generally involves a very high level of risk with investors’ money. When consumers invest in these types of products, they should be ready to lose all of their money, “said the FCA.