Investing in digital assets is risky and each token can have its own set of risks. Below is a list of risks that generally apply to all crypto assets:
- Volatility: performance can be highly volatile, with the value can drop as quickly as it can rise. You should be prepared to lose all the money you invest in crypto assets.
- Lack of protection: Digital asset investments are unregulated and are not protected by national investment protection schemes such as the US Securities Investor Protection Corporation (SIPC) or EU Investor Compensation Scheme (ICS).
- Liquidity: Digital asset markets may suffer from low liquidity which could prevent you buying or selling your digital assets at the price you want or expect.
- Complexity: Specific digital assets may carry with them specific complex risks that are hard to understand. Do your own research and if something sounds too good to be true, it probably is.
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