1. Volatility: Cryptocurrencies can be extremely volatile; the price of a single token can experience rapid and drastic changes in a very short period of time.
2. Security risks: Cryptocurrencies are vulnerable to hackers and other malicious actors. Funds can be lost due to theft, poorly implemented security measures, or scams.
3. Regulatory risks: Cryptocurrency regulations vary from country to country, which can lead to confusion for investors.
4. Liquidity risks: As the cryptocurrency market is still in its early stages, liquidity can be an issue. It can be hard to find buyers or sellers for a particular cryptocurrency when needed.
5. Scams: Crypto scams are becoming more common and can be difficult to detect. Investors should be extra careful when investing in unfamiliar projects.