### **Main Risks in Cryptocurrency Investment (2025)**

Cryptocurrencies like **Bitcoin (#BTC) and Ethereum (ETH)** carry great profit opportunities, but they also involve **very high risks** compared to traditional assets. Here are the main risks you should know before investing:

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## **🔴 1. Market Risks (extreme volatility)**

- **Wild fluctuations**: A currency may lose 30-50% of its value in a single day (like the collapse of "Terra LUNA" or exchange crises).

- **No ceiling or floor**: There are no guarantees for price stability.

- **Affected by global politics**: Wars, political decisions, and celebrity tweets (like Elon Musk) can suddenly affect prices.

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## **🔴 2. Government regulatory risks**

- **Bans on trading or mining coins**: Some countries (like China previously) have completely banned cryptocurrencies.

- **Taxes and tightening regulations**: Governments may impose high taxes or freeze assets (like what happened with "Binance" in some countries).

- **Account freezes**: Some banks prevent money transfers to trading platforms.

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## **🔴 3. Security Risks (hacking and fraud)**

- **Exchange hacks**: Such as the **MT.GOX** or **FTX** hacks, where investors lost billions of dollars.

- **Insecure wallets**: If you lose your **private key**, your funds can never be recovered.

- **Frauds**:

- **Scam Coins**: Projects that disappear after raising funds (like Squid Game Token).

- **Pump & Dump manipulation**: Groups manipulate prices to their advantage.

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## **🔴 4. Technology Risks (network failure)**

- **Errors in smart contracts**: Like the **DAO** hack that cost Ethereum investors millions of dollars.

- **51% attacks**: If a group controls more than 50% of the mining power, they can falsify transactions (this has happened with some smaller coins).

- **Chain split (Hard Fork)**: The blockchain may split into two different currencies (like Bitcoin vs. Bitcoin Cash).

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## **🔴 5. Liquidity risks (inability to sell)**

- **Low Cap coins**: You may not find a buyer when you want to sell, especially in a bear market.

- **Trading halts on some platforms**: Some exchanges stop trading currencies suddenly (like what happened with XRP in 2020).

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## **🔴 6. Risks of relying on demand (No Intrinsic Value)**

- **The value of coins depends only on supply and demand**, and they have no tangible assets backing them (like gold or real estate).

- **If you lose trust in them, their value may collapse to zero** (like the "Terra Luna" coin).

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### **🛡️ How to reduce risks?**

1. **Do not invest more than you can afford to lose**.

2. **Use cold wallets (Hardware Wallets)** like **Ledger** or **Trezor**.

3. **Diversify your portfolio** (do not put all your money in one currency).

4. **Research thoroughly before investing** in any currency (read the whitepaper, development team, and real use case).

5. **Avoid speculating on unknown small coins**.

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### **📌 Conclusion:**

Cryptocurrencies **are not a safe investment**, but rather **a high-risk tool with potential high returns**. If you are ready to take the risk, start with small amounts and keep learning.

> ⚠️ **Reminder**: This is not financial advice. Consult an expert before investing.

Best regards