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Market Access Risk

Warren Buffett has been quoted as saying: "Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years." When taking risk and positions in the cryptocurrency markets, it would be wise to think of this remark. Once again during a rout of volatility across all cryptocurrency assets on May 19th, market participants lost access and the ability to place orders as the major exchanges experienced system issues. While institutional participants are able to trade through OTC desks, the retail crowd is mostly shut out. This creates substantial risk should the outage continue for an extended period of time while price is volatile.

The cryptocurrency infrastructure needs major enhancements to support volume(s) and growth if it wants to compete with the more established financial markets. Until improvements are made, loss of access to markets creates a major risk for retail investors and those using leveraged instruments.



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