Digital currency risks are divided into many types, some of which are related to the market and some of which are related to various financial transactions, including trading and investment. Of course, you must be careful not to be exposed to risks before dealing with currencies, whether in investment or even in trading in brokerage operations in the currency market.
Cryptocurrency Trading Risks
Hidden costs are one of the most significant risks facing investors. They are the difference between the price placed in a trading order and the actual price at which it is executed. They can be avoided by carefully specifying orders.
The price of a cryptocurrency may be high at market close one day and drop sharply the next day, exposing investors to gap risk.
You may be exposed to the risk of executing a trade order in any cryptocurrencies you want at an incorrect price.
Risks of investing in digital currencies
These are risks that institutions face when completing entry and exit transactions for cryptocurrencies using some platforms. Here are the most important of them:
It is possible that you will find a golden opportunity to profit when investing your money in digital currencies. Finding the opportunity without capital results in losing it, which leads to a huge loss.
The daily fluctuations in cryptocurrency prices make putting all your capital into an investment one of the most important risks you face.