As we all know that every market involves risk and reward. So it is same for cryptocurrency too.
Let me tell you the risk involved in cryptocurrency trading:
1.Market Risk: Cryptocurrency faces problems with fluctuating value. If there is a decline in its acceptance across the world, then expect it to lose value and potentially become worthless.
2. Security Risk: Cryptocurrency is entirely digital, thus its not safe from hackers or criminals. Once they get your private encryption key and transfer the stolen Bitcoins/Other Coins to their accounts, it is permanent and irreversible.
3. Government Regulations: Various countries are now looking at the possibility of regulating the cryptocurrency, given its widespread adoption. But, the currency is being linked to various criminal transactions, forcing some governments to ban the usage and sale of Bitcoin. If national governments regulate Bitcoin, then it wont be too dissimilar from physical money.