Opinion from: Lucas Kiely, CEO of Future Digital
The cryptocurrency market has been plagued by speculation and a lack of quantifiable value, making it challenging for investors to navigate. Unlike traditional stocks, cryptocurrencies do not have a price-to-earnings ratio, supply chain, or tangible assets, making them highly unpredictable. This uniqueness is what sets cryptocurrencies apart from other asset classes, as they are driven solely by sentiment.
Understanding the Risks of Cryptocurrency Investment
While some may argue that the valuations of technology stocks like Apple, Meta, and Nvidia are not based on actual value, these companies still have fundamentals to fall back on, such as profits, cash flow, and products. In contrast, most digital assets lack these fundamentals, making them highly speculative. The promise of life-changing returns has drawn many investors to the crypto market, but it also comes with significant risks, including the potential for huge losses due to leverage and market volatility.
According to Lucas Kiely, CEO of Future Digital, the biggest problem with cryptocurrencies is that they lack the quantifiable value of traditional stocks, making them entirely speculative. Additionally, investors can leverage their trades to raise billions of dollars overnight, which can result in cascading liquidations that wipe billions of dollars of value from the digital asset market.
The Dangers of Unlimited Leverage
The ability to trade with unlimited leverage is a significant issue in the crypto market. While leverage is not a new concept in traditional finance, it is heavily regulated to prevent excessive risk-taking. In contrast, the crypto market allows investors to trade with leverage of 100x or more, which can result in massive losses when the market direction changes. The recent mass liquidation events in September and October 2025, which wiped out over $1.8 billion and $19 billion in leveraged positions, respectively, are a stark reminder of the dangers of unlimited leverage.
As the crypto market continues to evolve, it is essential for investors to take a more systematic approach to investing, taking into account the new reality of the market. This includes being aware of the risks associated with leverage and market volatility, as well as the potential for huge losses. By doing so, investors can make more informed decisions and avoid the pitfalls of speculation and excessive risk-taking.
A Call for Discipline and Responsibility
The crypto market is maturing, and with the entry of institutional investors, it is essential for investors to take a more disciplined and responsible approach to investing. This includes being aware of the risks associated with leverage and market volatility, as well as the potential for huge losses. By taking a more systematic approach to investing, investors can make more informed decisions and avoid the pitfalls of speculation and excessive risk-taking.
As Lucas Kiely, CEO of Future Digital, notes, the people who made millions with Bitcoin were lucky, and many others have lost more with Dogecoin (DOGE) than they would have without it. It is essential for investors to be aware of the risks associated with crypto investing and to take a more disciplined and responsible approach to avoid huge losses. For more information on the crypto market and its risks, visit https://cointelegraph.com/news/crypto-maturity-discipline-over-speculation?utm_source=rss_feed&utm_medium=rss_tag_blockchain&utm_campaign=rss_partner_inbound
