Bitcoin is trading around US$62,000 ($76,967) this week, a nearly 70 per cent increase from a year ago. At the same time, SQUID, a new crypto token named after the Netflix sensation Squid Game, saw its value crash to nearly zero — after skyrocketing by thousands of per cent — in an apparent scam.
If you’re wondering, as an investor, whether you should dabble in digital tokens, you’re likely to hear very different opinions from investment advisors. While some remain loath to put any of their clients’ money in crypto, others argue investors who can stomach the risk may want to consider devoting a small share of their portfolio to this new type of asset.
If you don’t know where to start, it helps to look at some of the risks that come with digital coins.
El Salvador becomes 1st country to adapt Bitcoin as legal tender
One thing to know about the crypto space: it continues to be rife with scams.
“Why is that? Well, anybody can issue a (digital) token,” says Andreas Park, a professor of finance at the University of Toronto and…