The risks of trading cryptocurrencies are mainly related to its volatility. They are high-risk and speculative, and it is important that you understand the risks before you start trading. As trader you need to understand below mentioned risks before starting you're journey as a cryptocurrency trader
1) They are volatile: unexpected changes in market sentiment can lead to sharp and sudden moves in price. It is not uncommon for the value of cryptocurrencies to quickly drop by hundreds, if not thousands of dollars.
2) They are unregulated: cryptocurrencies are currently unregulated by both governments and central banks. However, recently they have started to attract more attention. For example, there are questions about whether to classify them as a commodity or a virtual currency
3) They are susceptible to error and hacking: there is no perfect way to prevent technical glitches, human error or hacking.
4) They can be affected by forks or discontinuation: cryptocurrency trading carries additional risks such as hard forpks or discontinuation. You should familiarise yourself with these risks before trading these products. When a hard fork occurs, there may be substantial price volatility around the event, and we may suspend trading throughout if we do not have reliable prices from the underlying market.