$ETH Cryptocurrency is not for the weak-hearted because it is highly volatile, unpredictable, and emotionally challenging. Here’s why:
1. Extreme Price Volatility
Crypto prices can rise or fall by double digits within hours. Bitcoin, for example, has seen price swings of 50% or more within a few weeks.
This volatility can lead to huge gains or devastating losses, testing emotional resilience.
2. Regulatory Uncertainty
Governments worldwide are still figuring out how to regulate crypto.
Sudden bans, new regulations, or lawsuits (like SEC actions against exchanges) can crash the market overnight.
3. Scams & Fraud
Rug pulls, Ponzi schemes, and hacking incidents are common.
Many investors lose everything to fraudulent projects or cyberattacks.
4. Emotional Rollercoaster
The fear of missing out (FOMO) pushes people to buy at the top.
Panic selling during crashes leads to big losses.
Long-term holding (HODLing) requires strong nerves and patience.