What are the risks associated with investing in cryptocurrency?

1. Price Volatility: Cryptocurrency prices are highly volatile and can swing dramatically in a short period of time, making it difficult to make investments based on predictions or assumptions.

2. Lack of Regulation: Cryptocurrency is largely unregulated, meaning it is vulnerable to fraud, price manipulation and other nefarious activities.

3. Technical Complexity: Even the most basic cryptocurrency transactions require users to understand technical concepts like private keys, public keys, cryptography and blockchain technology.

4. Security Risks: Cryptocurrency wallets and exchanges can be hacked, leaving investors vulnerable to financial losses.

5. Limited Use Cases: The lack of real-world applications for cryptocurrencies makes it difficult to assess its long-term potential.