Top #Risks in Crypto Trading: Of which Your are Afraid Of!

There are several risks that crypto inventors should be aware of, including:

👉Market risk: This term typically refers to the volatility of the overall crypto market; it is also known as systematic risk

👉Specific risk: This term describes risks impacting a specific asset or area of the market; it is also known as unsystematic risk

👉Liquidity risk: Liquidity risk occurs when there are too many buyers or too few sellers for an asset, which can prevent you from trading at the right price — or at all

👉Market manipulation: Coordinated large-scale trading such as pump-and-dumps and wash trading can artificially influence trading data, making it difficult for investors to decide whether an investment is truly worthwhile

👉Regulatory risk: Insufficient or unclear regulations can provide you with little investor protection, leave you with unclear tax obligations, or expose you to scams and fraud

👉Leverage risk: Investors expose themselves to additional risk of loss if they engage in leveraged #trading , a strategy that involves borrowing

👉Security incidents: Some crypto projects are vulnerable to hacks and exploits, meaning that an otherwise strong crypto token may lose value following an incident

👉Emotional trading: Fear of missing out (#FOMO ), panic selling, and aggressive overtrading can all impact your profits and losses

In short, failure to monitor markets, failure to prepare for unexpected incidents, and impulsive trading decisions cover many of the risks that investors are exposed to.