Investing and trading in all financial markets carries risk.
Cryptocurrencies are not exempt from this and investors and traders should never invest more money than they can afford to lose.
INX does not provide investment, legal, or tax advice, and we provide this information for educational purposes only and all users of cryptocurrencies and digital assets are encouraged to conduct their own due diligence before opening an account and/or buying, selling, or trading cryptocurrencies and digital assets. You must evaluate your particular financial circumstances to determine whether or not trading cryptocurrencies is appropriate for you. You should not invest funds in cryptocurrencies that you cannot afford to lose. The trading of cryptocurrencies can result in substantial losses, including most or all of your investment.
Here are some of the numerous risks associated with cryptocurrency trading
- Cryptocurrencies are volatile and often see sharp and sudden moves due to many reasons including market sentiment
- Regulatory changes and differences from country to country may adversely affect cryptocurrency prices and liquidity
- Some cryptocurrencies are highly correlated to others and may see sudden price movements as a result
- Cryptocurrencies are susceptible to cryptographic errors and hackers
- Cryptocurrencies may be discontinued or abandoned or split through hard-forks
- Transactions may be irreversible and losses, due to fraudulent or accidental transactions, may not be recoverable
For more information about the risks associated with cryptocurrencies and other digital assets, check out the Important Information on Cryptocurrency and Digital Asset Risk.
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