1. Volatility: Cryptocurrency markets are highly volatile, and can swing significantly in a short period of time. This can result in large losses for traders who don’t have proper risk management strategies in place.
2. Hacking & Theft: Cryptocurrency exchanges and wallets are often targets for hackers and thieves, due to the lack of regulation in the space, and the perceived value of cryptocurrencies.
3. Regulatory Risk: Different countries have different regulations regarding cryptocurrencies, and therefore it can be hard to keep up with the changing legal landscape.
4. Fraud: Some cryptocurrency projects may be fraudulent scams, or have other issues associated with them that aren’t always immediately obvious. It is important to do research before investing in any cryptocurrency.