What are the risks of investing in cryptocurrency?

Investing in cryptocurrency involves several risks due to the volatility, security concerns, and regulatory uncertainties surrounding the market. One major risk is market volatility, as the prices of cryptocurrencies can fluctuate significantly within short periods, leading to potential losses. Another risk is security, as cryptocurrency exchanges and wallets are susceptible to hacking, and there have been instances of stolen funds. Additionally, cryptocurrency regulations vary by country, and regulatory changes can impact the value and accessibility of certain cryptocurrencies. Finally, the lack of investor protection means that there is no central authority to resolve disputes or recover funds in the event of a loss.