What are the major risks associated with cryptocurrencies?
Because cryptocurrencies are a relatively new breed of digital currencies, regulations are being drafted along the way, so there is always the potential for risk. Not to mention a high degree of uncertainty around how local regulators will respond to crypto in the future.
Cryptocurrencies exhibit highly volatile price movements. The risk of loss in trading or holding cryptocurrency can be substantial. If you use crypto to store value, or to speculate on a crypto’s future value, you always run the risk of losing some or all of your money if the value of the digital currency suddenly drops.
If you’re in any doubt about cryptocurrencies or the action you should take, we recommend you seek financial advice (including but not limited to tax) from an appropriately authorized and independent financial adviser. We don’t make any representation regarding the advisability of transacting in cryptocurrency.