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- Volatility: Cryptos are well-known for their volatility, being heavily influenced by factors that don't affect the value of fiat currencies. The result is you could potentially lose a lot of value in a very short space of time.
- Early days: In the grand scheme of things, cryptocurrency markets are still in their infancy, with any predictions regarding their future based on their short history offering little more than speculation, making investment riskier than other options.
- No backups: Depending on the storage option you choose for your cryptos, there is a very real danger that you could be locked out of your account forever. If you lose or forget your private key, there is no way to retrieve it!
- Addiction: With many classing cryptocurrency options as verging on gambling, it's worth realising that the rush of short term gains can become addictive, making it an even riskier pastime, not just to your finances but also to your mental health.
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