01
Volatility
Digital asset prices can rise or fall sharply within short periods, sometimes with little warning.
RISK AWARENESS
Understanding Crypto Risks
Learning how cryptocurrency works is only half the picture. Before making any decision, it is just as important to understand the volatility, liquidity, technology and custody risks involved.
Risk Awareness
Prices Can Move Fast
Why It Matters
Digital Assets Carry Real, Uneven Risk
Cryptocurrency prices, custody arrangements and the underlying technology can behave very differently from traditional financial products. Understanding these differences is a key part of responsible participation.
Some risks come from the market itself, such as sudden price swings. Others come from technology, security practices or the way an asset is stored and accessed.
None of this is meant to discourage learning about crypto — it is meant to help you approach it with clear eyes and realistic expectations.
CORE RISK AREAS
Three Risks to Understand First
These three areas cover most of the risk that shows up in everyday crypto discussions.
02
Liquidity
Some assets are harder to buy or sell quickly at a fair price, especially during periods of market stress.
03
Custody
How and where an asset is stored affects who actually controls it and what could go wrong if access is lost.
WHERE IT SHOWS UP
Risk Appears at Different Stages
Risk is not limited to price movement. It can show up before, during and after a transaction.
Before You Act
Market conditions, project fundamentals and your own risk tolerance all shape the outcome before a single transaction is made.
While You Hold
Wallet security, exchange reliability and ongoing market volatility can all affect an asset while it is held.
When You Exit
Liquidity conditions and timing can influence how easily an asset can be converted back without a significant price impact.
KNOW THE TERMS
A Few Risk Words You Will See Often
Recognising these terms makes it easier to understand risk disclosures and ask sharper questions.
Volatility
The degree to which an asset's price
moves up or down over time.
Liquidity Risk
The risk of being unable to buy or sell
at your preferred price or time.
Custody Risk
Exposure that arises when assets are held
by a third party rather than yourself.
Smart Contract Risk
Potential vulnerabilities in the code
that governs a blockchain application.
IMPORTANT TO KNOW
Common Categories of Crypto Risk
A closer look at the risk categories most relevant to everyday crypto participation.
Price Volatility
Digital asset prices can change quickly. Market movements may result in significant gains or losses.
Liquidity Risk
Some digital assets may have limited liquidity, making it harder to trade at a preferred price within a preferred timeframe.
Custody Risk
Assets held with an exchange, wallet provider or other third party may be exposed to operational or insolvency risk.
Technology Risk
Blockchain networks and related applications can experience technical failures, congestion or software vulnerabilities.
Cybersecurity Risk
Phishing, malware and compromised accounts can result in permanent loss of access to digital assets.
Regulatory Risk
Laws and regulatory treatment of digital assets can vary by jurisdiction and may change over time.
MAKE INFORMED DECISIONS
Understand the Risk Before You Take the Next Step
Read the full risk disclosure or talk to us directly about what these risks could mean for your specific situation.