What are the risks of trading cryptocurrencies.

[Goldlife]

The risks of trading cryptocurrencies are mainly related to its volatility. They are high-risk and speculative, and it is important that you understand the risks before you start trading.

*They are volatile: unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of cryptocurrencies to quickly drop by hundreds, if not thousands of dollars.

*They are unregulated: cryptocurrencies are currently unregulated by both governments and central banks. However, recently they have started to attract more attention. For example, there are questions about whether to classify them as a commodity or a virtual currency

*They are susceptible to error and hacking: there is no perfect way to prevent technical glitches, human error or hacking.

*They can be affected by forks or discontinuation: cryptocurrency trading carries additional risks such as hard forks or discontinuation. You should familiarise yourself with these risks before trading these products. When a hard fork occurs, there may be substantial price volatility around the event, and we may suspend trading throughout if we do not have reliable prices from the underlying market.

*We will endeavour to notify you of potential blockchain forks. However, it is ultimately your responsibility to ensure you find out when these might occur.


More info: https://www.cmcmarkets.com/en/learn-cryptocurrencies/what-are-the-risks

[Chiblex]

Indeed, all of that is absolutely true, but I am confused about what to answer and how to comment on this topic, whatever in this world is not only crypto, everything that is at high risk requires large capital and speculation, even the richest people in the world also have big risks. it's just that they have a strong mental and dare to speculate.

[Dreamer]

Of course, there are many risks in trading cryptocurrencies that can lead to loss and we may quit trading too. We have to be careful by understanding everything before we make a decision for investing our money in trading, volatile coins can go up 100% anytime but can go down 1000% anytime as well.

[Review Master]

Everything is right without any doubt, but it's better for @Yahoo88 or OP to write his/her own thought of that article so that we can discuss with that instead of providing whole article and giving the source links. TBH, there are enough risk for trading crypto currency and mostly traders can profit in this markets if he/she can control his/her emotion to do any trades.

[Chiblex]

That's why I am confused about what to answer because what is stated by @yahoo88 is all true and it is an article he quoted... maybe it is better if we discuss what is happening about crypto today than we quote from an article that we read... we can exchange ideas and add new insights...

[Goldlife]

Everything is right without any doubt, but it's better for @Yahoo88 or OP to write his/her own thought of that article so that we can discuss with that instead of providing whole article and giving the source links. TBH, there are enough risk for trading crypto currency and mostly traders can profit in this markets if he/she can control his/her emotion to do any trades.

Thanks bro for your nice feedback.  From now on, all your thoughts will be posted. Thank you.

[gabbie2010]

I believed trading with stop loss should be the first step towards reducing risk in crypto trading the article highlighted high volatility in the prices cryptos invariably trading it without any prior experience will lead to rekting of account, although trading cryptos can be profitable with a high reward to risk ratio however the risk can be taken care of with good money management and a working strategy

[robert20]

If you want to make big profit you need to take big risk. Investment in BTC or ETH for very long time like 4-5 years have almost no risk but it will give you little profit for holding such a long time.
On the other hand if you trade Altcoins it can give 2X ina day or week but it has very very high risk.

[Alt20]

You are right. Moreover, we know that cryptocurrency volatile can go up and down at any time. It has no regulator. Total uncontrolled. Due to all the things it has become a very risky matter.

[Triedboy]

Of course, you have to take a lot of risk when trading in cryptocurrency. Because in cryptocurrency there can be a token pumping and dumping from time to time. Therefore, in order to trade cryptocurrency, he must have knowledge about cryptocurrency more than any other exchanger. So I would tell everyone who is new to cryptocurrency to never think of trading. If so, you will definitely fall into loss

[mahid]

It can be said that if you are able to bear risk then you can invest in crypto currency. Because we know that crypto currency is volatile here profit and risk both are co-related. If you invest in crypto currency with out having knowledge, if you lend money to invest and several issues are on going in the platform which are very much risky.

[Damrai5$]

Of course, those who trade must know that they will benefit or they will lose. Of course many have benefited from trading but they have knowledge about middle cryptocurrency. And they always keep updated news about all the exchangers.  Basically they can make a profit by trading. Moreover, no one can benefit from trading if he is ignorant of all those things.

[Jaya60]

If one wants to trade or invest in cryptocurrency, one must have knowledge of all aspects of cryptocurrency. If you have to take risk in cryptocurrency then it is possible to get profit. If you can take risks then of course you will be trading maybe one day you can get big profit. I think cryptocurrency trading means risk.

[Pitter]

In fact, cryptocurrency is a risk platform. Everyone who comes here has to come at their own risk. Nothing can be done from here without risk. I just believe that if any one analysis before invest they can reduce their risk comparatively from others.

[Casual]

I think those who trade in cryptocurrency trade by accepting risk. When you are trading, you will see that suddenly the value of a coin has increased many times and suddenly there has been a lot of dumping. But you can certainly make a lot of money by trading but you need to know about the cryptocurrency market. If you have to make the right decision at the right time, then it will be seen that you have benefited by trading.