The risks associated with trading cryptocurrencies are generally considered to include but are not limited to, the following.
- Price Volatility: Digital assets have historically experienced significant price intraday and long-term price swings.
- Spot Markets: The spot markets for digital assets like cryptocurrencies are in a nascent stage and largely unregulated in various jurisdictions.
- Market Adoption: Digital assets generally, or any digital asset, in particular, may lose its significant value due to a lack of broad adoption or lack of commercial acceptance.
- Government Regulation: The regulatory frameworks of digital assets are yet to be evolved and hence existing or future regulations may have a significant impact on the value of digital assets.
- Security: The digital asset remains a potential target for hackers. Once it is lost or stolen, it cannot be found back as transactions are irrevocable.
- Other: Digital assets are prone to error. It can also be affected by forks, discontinuation, and/or suspension in trading.
Please refer to the link [Index of Cryptos (IC15)] for details.