1. Regulatory risk: Governments around the world are still trying to figure out how to regulate cryptocurrency, making it difficult to predict regulatory direction.
2. Volatility risk: Cryptocurrencies are highly volatile, so their prices can rapidly change due to market shocks or rapid shifts in investor sentiment.
3. Exchange risk: Cryptocurrency exchanges can be hacked, and funds stored on them may be stolen.
4. Storage risk: Storing cryptocurrencies in a digital wallet carries the risk of loss if that wallet is compromised.
5. Security risk: Cryptocurrency transactions are not reversible, so if someone steals your private keys, you can’t get your money back.
6. Fraud risk: Fraudsters may promote untrustworthy investments or scams, making it hard to protect yourself from losing money.