Unique risks
The risks of CryptoKitties depend on why a person is buying them in the first place. If you decide to buy them for fun, then you're not really risking anything. It's like buying a Tamagotchi or a Beanie Baby.
It becomes a risk, and a big one at that, if you decide to buy CryptoKitties as an investment. Any type of collectible, digital or physical, will fluctuate in value, depending on its popularity at the moment. That's practically impossible to predict, so you may not be able to sell your CryptoKitties for more than you paid.
CryptoKitties became very popular shortly after the game's release. After peaking on Dec. 10, 2017, interest in CryptoKitties fell dramatically. In September 2021, they had a brief resurgence, including sales of more than $7 million in a single day, likely motivated by a popular NFT collector taking an interest in them.
Is CryptoKitties a good investment?
CryptoKitties aren't a good investment, but, to be fair, they're not intended to be one. The game's website makes that clear. It advises new players to have realistic expectations and clarifies that "this is a game centered around collecting digital cats, not an investment portfolio or a get-rich-quick opportunity."
The only reason to buy CryptoKitties is if the game interests you. Although you can make money from it if you’re lucky, it's not worth pursuing as a money-making venture. If you want to invest in cryptocurrency and blockchain projects, there are much more suitable options. The two largest cryptocurrencies, Bitcoin (BTC +1.51%) and Ethereum, are both good places to start. You can also try cryptocurrency stocks if you want something that's easy to invest in using a standard brokerage account.
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