What risks are involved with investing in cryptocurrencies?

1. Volatility: Cryptocurrencies are highly volatile and can be subject to large swings in price. Cryptocurrencies are still relatively new, so they are not as mature as traditional investments and can be more risky.

2. Lack of Regulation: Cryptocurrencies are not regulated by any central authority and are decentralized, which means they are subject to manipulation and fraud.

3. Lack of Liquidity: Cryptocurrencies lack the same liquidity as traditional investments and could be difficult to convert into cash.

4. Cybersecurity Risk: Cryptocurrency exchanges can be susceptible to security breaches and hacking, resulting in the loss of funds.

5. Tax Risks: Cryptocurrencies are often subject to uncertain and changing tax regulations, which could result in unexpected taxes or penalties.