Investments in cryptocurrency could be quite complicated, especially for those traders who are not familiar with main principles of blockchain technology and the way distributed lendger works since these are key elements of any cryptocurrency.
It is important to understand that each crytocurrency has certian features of both currency in commodity. In fact, some countries treat cryptocurrencies as commodities while other classify them as means of payment like other currencies. At the same time, due to the decentralized nature, it is also necessary to analyse information related to the company issuing that currency. In this aspect investing in crypto is very close to equity investments.
Each crypto investor should also be aware of huge volatility that could lead to substantial losses in case of trading without proper risk management. Volatility could create interesting opportunities for short term traders, while mid-term or value investors would have to set stops wide enough to be able to hold positions long enough.