Indeed, cryptocurrency has become a worldwide phenomenon. While many people are excited about its potential, they also know that it is risky.
So, are there risks to investing in cryptocurrency? Yes. Here are the top three risks of buying cryptocurrency:1. Risk of losing your investment.
Cryptocurrency is volatile and prone to price swings. This can be very unsettling to investors used to traditional markets, where a small shift in the share price can be attributed to the weather, or the economy, or the Chinese New Year.2. Risk of being hacked.
Cryptocurrency online wallets are not really wallets at all. They are just big storage containers for your digital assets. This means that if you want to store a large amount of cryptocurrency, you need to use a secure hardware wallet.3. Risk of fraud.
Cryptocurrency is not regulated, meaning there is no governing body in charge of preventing fraud. This naturally increases the risk of fraud. You simply do not know who is behind the account you are dealing with.