Risks of Investing in Crypto-Currency

[hasyu]

Following are the risks involved in the crypto-currency

Regulation
Taxation
Peer to peer crypto transactions
National CryptoCurrencies
Corporate CryptoCurrencies
Value Drop
Exchange Risk
Pump n Dump Groups
Scams
Crypto Mining
Too Diversified
Lack of diversification / Non Diversified
Not keeping up with the news
Roadmap breakdowns
Reputation Risks
Out maneuvered by competing projects
Theft of the coins and Kidnapping
Human emotion: FOMO and FUD the troublesome twins.
Lost passwords / Keys
Loosing access to your computer, email or exchange account.
Not taking out profits
Getting sucked into the rabbit hole of the cryptoverse.
Unknown Risks

 

[CryptoTC]

Control the risks that are under your control such as coin security. Keep up with news and regulations, but don’t make long-term investment decisions based on short-term good or bad news. Invest for June 2021, not June 2018. Pick a coin or token likely to be around in 3 years, then assess its project and likelihood of growth.

Flipping in and out is not only risky, it’s very tax inefficient.

 

[Old Man Crypto]

Hacks everywhere. Including google’s problem with myetherwallet today. That one surprised even cynical old me. I wouldn’t have believed it could happen honestly.

Hardware wallets for anything over a few hundred dollars worth of crypto. And triple check all send addresses for malware substitutions/

Security and user interfaces aren’t ready for prime time in my opinion. It’ll be awhile too.

 

[kylie Barker]

The main Risk is that you could lose your investment if you don't have complete knowledge:-
1. Poor investment decisions puts you in loss.

2. A malicious attack or fundamental programming mistake that breaks public confidence in the block-chain (this is the global distributed ledger on which all accounts, balances and transactions are maintained).http://coinsesame.com
3. If Cyber threat, malware, virus enters in your wallet then you can lose your bitcoins.
4. Forgotten Login ID or Password can completely destroy your coins.
5. Governments attempting to regulate cryptocurrency out of existence..

Cryptocurrency is a more secure investment according to my experience than other investment because the security is ensured by cryptography and mathematics rather than the whims of very powerful centralized authorities like the reserve bank.