Discover the 4 reasons why investing in cryptocurrency is risky
There are risks associated with trading digital currency.
Before buying them, you should fully understand how the crypto market works and understand the risks that you run by investing in it.
The main problem is that cryptocurrencies are volatile and prices can rise and drop quickly.
So if you buy 2 BTCs and after a short time you decide to resell them, you will not recover the same value, but you will have to sell it at the new market value, which may be lower or higher.
These are the main risk factors:
- Price volatility: Unexpected changes in the market can lead to abrupt and sudden price fluctuations. It is not uncommon for the value of cryptocurrencies to fall rapidly by hundreds of dollars.
- They are not regulated: being a decentralised currency, it is not currently regulated by most governments or central banks. Cryptocurrencies have been developed to be free from government control or influence, with the exception of stablecoins such as Tether.
- They are susceptible to errors and hacking: as a digital currency, cryptocurrencies are vulnerable to technical errors, human errors or hacking.
- They can be subjected to forks or interruptions: when a hard fork is made in a blockchain, substantial price volatility can occur, in that case, we may suspend the access to Young Platform.
The first way to protect yourself from the risks of the market is to get informed and stay informed, that’s why on the Young Platform Dashboard and in the Education section of Stepdrop, you can find the latest news and information about cryptocurrencies.
As a proactive measure to protect against theft, we encourage users to check the following items on their accounts:
- Make sure that your email address is receiving all communications and notifications from Young Platform correctly.
- Make sure your two-factor authentication is up to date and functional. If you have recently changed your mobile device, two-factor authentication must be correctly migrated to the new device. To improve the security of your account we recommend selecting Google Authenticator as the 2FA method.
- Also, make sure you have completed all pending levels of identity verification.