What kind of risks are associated with investing in cryptocurrency?

1. Price Volatility: Cryptocurrencies are highly volatile assets, meaning that their prices can change drastically and rapidly over time. This can lead to investors making large losses in a very short time frame.

2. Security Risks: Cryptocurrency transactions are not reversible and are stored on a public blockchain that is susceptible to hacking.

3. Regulatory Risk: Cryptocurrencies are not regulated by any government or central authority, which means they could be subject to tighter regulations in the future that could hurt the value of your investments.

4. Operational Risks: Crypto exchanges and wallets may be unreliable or vulnerable to fraudulent activity, resulting in financial losses for investors.

5. Tax Implications: It is unclear how the IRS will classify cryptocurrencies, leaving investors uncertain about the potential tax implications.