Every type of investment involves some level of risk. However, there are numerous and distinct risks associated with cryptocurrency that you should be aware of. Some of the risks associated with cryptocurrency include its volatility, lack of regulation, and rampant scams.
Several factors indicate that cryptocurrency is not always a safe investment. More than stock exchanges, cryptocurrency exchanges are vulnerable to hacking and becoming targets of other criminal activity. Security breaches have resulted in significant losses for investors who have had their digital coins stolen, prompting many exchanges and third-party insurers to begin offering hacker protection.