What are the risks associated with trading cryptocurrency?

1. Volatility: The prices of cryptocurrencies are highly volatile and unpredictable, meaning that the value of your investments can rapidly decrease as well as increase.

2. Lack of Regulation: Cryptocurrency trading currently takes place outside of government regulations and laws, making it a largely unregulated market. This makes it difficult to protect yourself from fraud or other malicious activities.

3. Security Risks: Cryptocurrencies are stored in digital wallets and can be vulnerable to cyber-attacks. If your wallet is hacked, you could lose all of your digital assets.

4. Tax Implications: Investing in cryptocurrencies may cause tax complications as the law can vary from jurisdiction to jurisdiction.

5. Hacking Risk: Exchanges and online wallets can be vulnerable to hacking and other malicious activities. If the platform is hacked, you may risk losing all of your digital assets.

6. Fraud risk: There is a potential risk of dealing with unscrupulous people who might be trying to fraudulently acquire cryptocurrency.