Like ANY type of investing, there are risks. In cryptocurrency, there are very serious risks, given the sheer nature.
The largest of them is that you could lose your ALL of your money. Any good investment advisor or website will tell you to never invest money you can afford to lose.
With Crypto there are some common risks and complex risks.
Common Risks:
- You input the incorrect key address when buying/selling/transfering crypo assets
- You lose your seed keys and other important information that allows access to your wallet
- Not using complex email and password phrases for exchange accounts
- Storing funds on an exchange as method of permanent store. Keeping crypto on an exchange is never a good idea.
Complex Risks:
- Malware address spoofing: You copy you wallet address accurately, but malware can replace the address in the clipboard with a different address.
- Hacking hot/online wallets: Hackers can use intelligence to spoof the domain and once access is gained, they can access & steal cash flows. An example this happened in December 2017 on EtherDelta.
- Software wallet malware theft: This type of wallet can be subject to malware or lost if the hard drive crashes. Most users make hard copies of their secret key and purchase hardware wallets.
- Fishy ICOs: Always, do your research when/if investing in ICOs. Some coin offerings have nothing but a mere 1 page whitepaper, with no team or backing of product road map.
