1. Volatility: Cryptocurrency markets can be highly volatile, meaning prices can suddenly and drastically increase or decrease.
2. Security: Cryptocurrencies are mainly digital, and as such can be susceptible to hackers and cyber attacks.
3. Regulatory Risk: The cryptocurrency market is constantly evolving, and the regulatory landscape is still in flux. It’s possible that governments may impose restrictions or regulations on cryptocurrencies in the future.
4. Liquidity Risk: It can be difficult to trade larger amounts of cryptocurrencies due to limited liquidity.
5. Market Manipulation: Due to the lack of regulation, there is a risk that individuals or groups may manipulate the market for their own gain.