Coinbase CEO Brian Armstrong has advised those new to the cryptocurrency space that “crypt is not without risk,” in a post published shortly after the price of bitcoin hit a new all-time high above $23,000.
In the post, published on Coinbase’s official blog, Armstrong wrote that he and the cryptocurrency exchange take a “long-term view of the market,” and pointed out that investing in cryptocurrencies is “not without risk.” He wrote:
While it’s great to see market rallies and see news organizations turn attention to this emerging asset class in a new way, we cannot emphasize enough how important it is to understand that investing in crypto is not without risk.
The CEO of Coinbase then pointed out that cryptocurrencies can often be more volatile than traditional financial instruments that most investors are used to, and pointed out crypto prices “can move in either direction much faster than equity markets.”
The post added that while Coinbase offers traders tools to take advantage of the market, it also cautions those “who may be focusing on short-term speculation.” Its users, it adds, are encouraged to “seek out resources and consult financial advisors to better understand the risks associated with investing in cryptocurrencies.”
Seemingly referring to Coinbase’s outages over the year during periods of significant market movements, Armstrong added that the firm “may occasionally fall short” but does its best to address its shortcomings.
Last month, as reported, Coinbase’s head of institutional coverage Brett Tejpaul said institutional interest in cryptocurrency has grown more than threefold since joining the exchange earlier in the year.