1. Price volatility: Cryptocurrency prices are notoriously volatile, which means that investors can potentially lose a large amount of money in a short period of time if they are not careful.
2. Security risks: Cryptocurrency exchanges and wallets are vulnerable to hacking and theft, so investors must take steps to ensure the safety of their coins and tokens.
3. Regulatory uncertainty: The legal status of cryptocurrency is unclear in many countries, so investing in it could expose investors to unforeseen legal risks.
4. Lack of liquidity: Many cryptocurrencies have low trading volumes, which can make it difficult to buy or sell large amounts quickly.