The Risks of Trading Cryptocurrency

Posted in US | Trade Tap Blog | Crypto
5 minute read
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Known for being highly volatile, what are the risks of cryptocurrencies? We take a look to find out.

5 Major Risks of Trading Crypto and How To Minimize Them

Risk #1: Volatility

Largest Daily Drawdown in Crypto Total Market Capitalization

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Fig 1: Cryptocurrency Market High to Low Drawdown, calculated using $TOTAL TradingView
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Fig 2: Cryptocurrency Market Cap trends as of May 2023, $TOTAL TradingView

Risk #2: Liquidity

Risk #3: Scams and Frauds

Risk #4: Regulatory Risks

Risk #5: Using the Wrong Broker

What is Spot Trading in Crypto?

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