Quote from: mindrust on July 13, 2022, 06:27:07 AM

Quote from: bounty236 on July 06, 2022, 11:39:53 AM

The risks of trading cryptocurrencies are mainly related to the volatility of the cryptocurrency market, which represents a high risk, it is important that we understand the risks before starting an investment in cryptocurrencies. All financial assets carry high risk, whether through the use of leverage, susceptibility to cyber attacks and errors, unethical trading techniques, or target market volatility.

Aside from the risk of volatility, the exchanges are the biggest risk here imo. Since almost everybody uses centralized exchanges and we don’t know when will they get hacked, the user funds are always at risk when they are on the exchanges. You shouldn’t keep huge amounts of coins on the exchanges because you’ll never know what is going to happen to them tomorrow.

Any point of centralization is a risk in a market that aims for decentralization, not only you have to worry about hackers you also have to worry about the exchange not stealing your funds, and if that was not bad enough you also need to worry about governments seizing the assets of the exchange, and then you will have through a literal hell to recover the coins you have lost, so without a doubt centralized exchanges are a huge point of failure that can be exploited by anyone that has the resources to do so, and it is because of this we cannot leave our coins with them for long periods of time.