#VietnamCryptoPolicy Despite implementing appropriate security measures, this does not mean that cryptocurrencies are immune to hacking. Many hacking incidents have cost cryptocurrency startups significant losses. Hackers caused Coincheck to lose $534 million and BitGrail to lose $195 million, making them two of the largest cryptocurrency hacks in 2018.

Unlike government-backed money, the value of virtual currencies depends entirely on supply and demand. This can lead to extreme volatility resulting in significant gains for investors or substantial losses. Cryptocurrency investments are subject to far less regulatory protection than traditional financial products such as stocks, bonds, and mutual funds.