When you engage in cryptocurrency trading, there are several common risks that you should be aware of. Here are some of these common risks:
1. **Price Fluctuations:**
- Cryptocurrencies are subject to sharp price fluctuations due to economic, political and technical factors, which can lead to significant losses.
2. **Fraud and Security:**
- There are many scams in the world of cryptocurrencies, whether through suspicious trading platforms or fake investment offers, so you should be careful and follow security procedures.
3. **Legislation and Regulations:**
- Changes in government legislation and regulations can affect cryptocurrency trading laws and thus investments.
4. **Wallet Loss:**
- If you lose access to your digital wallet (such as a private key or password), this can result in the permanent loss of your funds.
5. **Low Liquidity:**
- Some small cryptocurrencies may be subject to liquidity issues, making it difficult to sell them quickly at fair prices.
6. **Platform Security:**
- Cryptocurrency trading platforms may be vulnerable to hacking, so you should choose reliable platforms and secure your accounts well.
7. **Emotional Investment:**
- You should stay calm and follow a sound strategy.
Risks and following appropriate protection measures, you can reduce risks and increase your chances of success in the world of cryptocurrency trading.