The risks of cryptocurrencies

Investing in cryptocurrencies can be very risky.

Firstly, to buy and store a cryptocurrency is quite technically demanding and it’s very easy for things to go wrong. The lack of regulation and central authority means that seeking compensation or making complaints is also very difficult.

Second, the cryptocurrency marketplace is a target for fraud, so extra caution is needed. Also, many exchanges have been subject to cyberattacks during which people who have left their holdings on these exchanges have lost them.

Lastly, the unstable nature of the currencies means that if you’re investing with the hope of making money, it’s very easy to lose some or all your original investment.