Part 2/10:
Cryptocurrencies are renowned for their high volatility, making them inherently risky investments. Their prices can surge or plummet within short periods, often driven by market sentiment, technological developments, or speculative trading. Experts identify three primary risks investors face:
Investing in Obscure Coins: Many investors fall prey to poorly understood or obscure tokens with little real utility or backing, which can quickly become worthless.
Failed Projects: Investors often allocate funds to crypto projects that ultimately fail, resulting in significant losses.
Scams and Fraudulent Schemes: The proliferation of scams has risen in tandem with the hype around cryptocurrencies, leading to numerous reports of theft and fraud.