Expert Warns of Risks in Investing in Cryptocurrencies
Dmitry Isakov, founder of the investment platform Lender Invest, warned on August 12 about the risks inexperienced investors face when dealing with cryptocurrencies in Russia. He emphasized that cryptocurrency remains a high-risk asset, and its legalization does not guarantee protection from fraudsters.
According to the expert, the lack of restrictions on cryptocurrency purchases for non-qualified investors creates danger, as many may view it as an alternative to bank deposits. However, the difference in risk levels between these instruments is vast.
He explained that while deposits are primarily for capital preservation, cryptocurrency requires investors to be prepared for significant price volatility (around 45-60% per year) and potential losses. Legalization does not change the inherent nature of this volatile asset.
Isakov advised that private investors should not chase the highest potential returns but instead build a personal financial strategy systematically. This includes first establishing a safety net of 3-5 months of expenses, then investing in understandable instruments with predictable risk levels. Only after that should high-risk assets like cryptocurrency be considered.
He recommended allocating only about 10-15% of an investment portfolio for experimenting with such new instruments, with the remainder in more traditional assets like stocks, mutual funds (ZPIF), and bonds. High-risk assets can be part of a diversified portfolio but not a replacement for classic instruments with clearer economics and more predictable returns.
This warning comes as the Central Bank of Russia recently authorized public trading of Bitcoin, Ethereum, and Tether USDT on exchanges. Qualified investors will be able to purchase all cryptocurrencies traded on exchange and over-the-counter markets without restrictions. This follows President Vladimir Putin signing a law on August 4 establishing the legal framework for cryptocurrency circulation in the country.
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