1. Volatility: Due to the high volatility of cryptocurrencies, it is difficult to assess their true value and know when to buy or sell in order to make a profit.
2. Security Risks: Cryptocurrencies are susceptible to hacking, as evidenced by several highly publicized thefts.
3. Regulatory Risks: Cryptocurrency regulations are still developing and vary widely by country, creating uncertainty.
4. Lack of Consumer Protection: Since cryptocurrencies are not regulated, there is no legal recourse if something goes wrong.
5. Fraud: Fraud is a common problem in the cryptocurrency space, with some projects existing solely to scam users out of their money.