We know that cryptocurrencies offer opportunities to earn income, but the risks are many. Let's observe four key types of risk to consider.
1. Market Risk (Volatility)
Its value can fluctuate dramatically in hours or even minutes due to certain factors such as:
* Regulatory news.
* Market manipulation ("pump and dump").
* Institutional adoption or rejection.
Impact
* Quick gains, but also sudden losses.
* Difficulty predicting long-term trends.
Strategies
* Diversification
* Stop-Loss
* HODL (Long-term investment)
2. Security Risk (Hacks and Scams)
Cryptos are vulnerable to:
* Phishing and frauds (e.g.: fake exchanges).
* Attacks on wallets and exchanges** (e.g.: Mt. Gox, Poly Network).
* Scams like rug pulls (projects that disappear with the money).
Outcome total loss of funds with no possibility of recovery.
Strategies
* Use hardware wallets (Ledger, Trezor) instead of leaving funds on exchanges.
* Verify projects (smart contract audits, doxxed team).
* Two-factor authentication (2FA) for accounts 3. Regulations Government intervention
Governments can
* Ban cryptocurrencies
* Impose strict regulations
* Freeze funds in centralized exchanges.
The impact
* Price collapse due to regulatory panic.
* Limitations on access to financial services.
Strategy
* Keep funds in decentralized wallets (not on exchanges).
* Operate in jurisdictions with regulatory clarity
* Properly declare taxes to avoid penalties.
4. Human and Technical Errors
* Sending crypto to the wrong address (irreversible transactions).
* Losing private keys or recovery seeds
* Failures in smart contracts e.g.: bugs in DeFi.
Impact
* Permanently locked or lost funds
Strategies
* Store recovery seeds in safe places (not digital).
* Verify addresses before sending funds
* Use audited contracts in DeFi.
Making a living with crypto is possible, but you need -active risk management-. Volatility, security, regulations, and operational errors are all constant threats. If you educate yourself, diversify, and adopt good security practices, you will have greater guarantees of success in this high-risk, high-reward market.
And of course!! Don't invest more than you are willing to lose.
#criptos #ganar #RiesgosDeInversion $BNB