Legal
Risk disclosure
Read this before acting on anything you learn on this site. Cryptocurrency is a high-risk asset class, and the most important fact about it is simple: you can lose every unit of money you put in.
Volatility risk
Crypto prices routinely move by double-digit percentages within hours and have historically experienced drawdowns of 70–90% from peaks, including for the largest assets. Smaller tokens can lose effectively all value. There is no mechanism that prevents an asset's price from going to zero, and past recoveries do not guarantee future ones.
Market risk
- Liquidity: in stressed markets, you may be unable to sell at or near quoted prices, or at all for thinly traded tokens.
- Concentration and manipulation: some markets are dominated by large holders and are susceptible to manipulation, wash trading and misleading volume.
- Correlation: diversification within crypto provides limited protection because assets often fall together.
- Stablecoins: assets designed to hold a fixed value have lost their pegs in the past, sometimes permanently.
Trading risk
- Spreads and fees reduce returns and can exceed expectations on "commission-free" venues.
- Margin and derivatives amplify losses; positions can be liquidated automatically, and in some products losses can exceed the initial amount committed. These instruments are unsuitable for most retail users.
- Operational events: outages and degraded performance have historically coincided with extreme volatility, preventing users from trading at critical moments.
- Irreversibility: blockchain transactions generally cannot be reversed. Funds sent to a wrong address or network are usually unrecoverable.
Custody risk
- Crypto held on an exchange is typically not protected by government deposit insurance (such as FDIC or SIPC in the US). Commercial insurance, where it exists, is limited and may not cover your loss.
- Exchanges have been hacked, become insolvent, or frozen withdrawals; in insolvency, customers may be treated as unsecured creditors.
- Self-custody removes counterparty risk but adds personal risk: lost keys or seed phrases mean permanently lost funds, and individuals are common targets of phishing and malware.
Regulatory risk
- The legal status of crypto assets, staking, derivatives and platforms varies by jurisdiction and continues to change.
- Regulatory action can restrict products, force delistings, or render a platform unavailable in your region with limited notice.
- Tax treatment is complex and varies; transactions may create tax obligations even without converting to fiat currency. Consult a qualified tax professional.
Other risks
- Fraud: the sector attracts scams, fake platforms, impersonation and "guaranteed return" schemes. No legitimate party guarantees crypto profits.
- Technology: smart-contract bugs, protocol failures and bridge exploits have caused large, unrecoverable losses.
- Staking/yield products: rates change without notice, rewards are paid in volatile assets, lock-ups can trap funds during downturns, and validators can be penalized.
Our position
This website is an educational comparison resource. We do not provide investment advice, we do not recommend buying any asset, and a high editorial score is not a statement that a platform — or crypto in general — is suitable for you. Before committing any money: verify current terms on official sources, understand your local rules, consider consulting a licensed financial adviser, and never commit money you cannot afford to lose entirely.