While it is true that many individual traders made fortunes on the spot Bitcoin market, contemporary investment strategies are a different story with lots of trading happening on partially self-regulated (if at all) exchanges that do not offer any sense of security to their clients.
The Forex market had many similar qualities before many national regulators started regulating how institutionalized traders can behave. For example, the ability to place unlimited orders to skew the market and create a wrong perception of the price was something that allowed big players with strong technological capabilities to destroy individual traders.
It was easy for people with enough resources to simply put a large number of buy orders and short their positions at the same time to fool some investors.
This method was eventually outlawed and the era of huge Forex gains for shady traders was over. However, it is flourishing in the new domain — the crypto industry where regulation is something impossible due to the concept of many cryptocurrencies in general.
Many coins retain their popularity because of decentralization, the inability of governments to take control over the flow of these coins on exchanges.
Some believe that all these things relate strictly to people who engage in intraday trading, employ risker strategies, and expose themselves to various market risks by trying to speculate on the price of an asset.
However, the current state of the crypto market is far from reliable and stable with so much unregulated speculation going on. It negatively affects the public perception of various blockchain-based projects and reduces the chances for global adoption.
We need regulation and we need it as quickly as possible. Having more protective measures will drastically increase the legitimacy of the asset in the eyes of millions of individual investors across the globe and may bring more institutionalized players who won’t have the same impact on the market as they do now due to the absence of any meaningful limiting factors and laws organizing the way market participants interact with each other.
The only good advice to give to novices, please, to abstain from heavy speculations in the cryptocurrency market unless you understand the risks.