The market's youth and unpredictability also means it offers opportunities to make money in ways that are no longer available on traditional exchanges (and may even be prohibited there).

Arbitrage (buying in one place and selling in another when the market is skewed), pump-and-dump trading (using various methods to artificially create hype around certain products), and the use of insider information are examples.

Cryptocurrency Market Risks

Let's briefly consider the negative factors that make the cryptocurrency market particularly risky.

Concentration of value in a few hands. Many cryptocurrencies, particularly Bitcoin, are believed to be centralized in the hands of a small number of people. For example, Bitcoin creator Satoshi Nakamoto retains around a million bitcoins (almost 10%) in his wallets. Various studies show that 30% of Bitcoin is concentrated in the hands of fewer than 1,000 people. The same applies to Bitcoin hard forks.