1. Volatility: Cryptocurrency prices are extremely volatile, which creates a huge risk for investors who may not be able to handle large losses in a short period of time.
2. Regulatory Risk: Regulations around cryptocurrency are constantly changing and often unclear, which leads to an uncertain investment environment.
3. Security Risk: Cryptocurrency is still new and developing, so there are potential security risks associated with it, such as hackers or other malicious actors.
4. Fraud Risk: There are numerous reports of scams and fraudulent activity related to cryptocurrency, especially through exchanges or Initial Coin Offerings (ICOs).
5. Tax Implications: There can be major tax implications when investing in cryptocurrency, as different countries have different regulations when it comes to taxes.