$BTC

**Risks of Trading Cryptocurrencies You Should Know**

Trading cryptocurrencies like Bitcoin, Ethereum, and other altcoins can be extremely profitable, but it also comes with significant risks. Here are some key risks to consider:

1. **Extreme Volatility** – Cryptocurrency prices can fluctuate dramatically within minutes, leading to massive gains or devastating losses. What seems like a promising deal can quickly turn against you.

2. **Lack of Regulation** – Unlike traditional markets, cryptocurrencies operate with minimal oversight, making them susceptible to fraud, scams, and market manipulation (such as pump-and-dump schemes).

3. **Security Threats** – Hacks, phishing attacks, and exchange breaches can lead to the loss of funds. If you do not store your cryptocurrency securely, you could lose everything.

4. **Liquidity Risks** – Some smaller coins suffer from low trading volumes, making it difficult to sell without significantly impacting the price.

5. **Emotional Trading** – Fear and greed often drive cryptocurrency markets, leading to rash decisions that can wipe out portfolios.

Before investing, always conduct thorough research, trade only what you can afford to lose, and consider using risk management tools like stop-loss orders. Stay safe in the world of cryptocurrencies!