Cryptocurrency Total Market Cap Hits Historical High: Retail Investor Safety Action Manual
Risks Retail Investors May Face
1, Extremely High Volatility: The cryptocurrency market is known for its extreme volatility. Large pullbacks (20%-50% or even deeper) after historical highs are common. Retail investors easily face rapid declines after chasing highs, resulting in significant losses.
2, Regulatory Policy Uncertainty: Regulatory policies around the world are still rapidly evolving. Sudden harsh regulations (such as crackdowns on certain types of assets, trading behaviors, or platforms) can lead to market panic and price crashes.
3, Project Risks (Fraud, Failure): The market frenzy period is also a breeding ground for scams, exit scams, and low-quality projects. Retail investors are easily victimized by 'rug pulls', Ponzi schemes, or purely worthless tokens. Even seemingly legitimate projects have a high failure rate.
