1. Volatility: The price of cryptocurrencies is subject to extreme volatility and can fluctuate drastically from one day to the next.
2. Hacking Risk: Cryptocurrency exchanges, wallets and other storage solutions are susceptible to hacking, which could result in the loss of your digital assets.
3. Regulatory Uncertainty: Cryptocurrencies are not currently regulated but that is subject to change. It’s possible that governments could enact restrictions that affect the use of cryptocurrencies or their value.
4. Security Risks: As with any online transaction, there is always the risk of identity theft or fraud when using cryptocurrencies.