The sad truth about holding cryptocurrency is that there are a lot of very real risks. The largest of them is that you could lose your money…ALL of it!
Investment advisors will tell you never invest more than you can afford to lose, and that explicit warning tends to be communicated more strongly, the higher risk the investment vehicle. Ironically, these prescriptive words are usually provided as it relates the investment not working out as planned, namely, that the investment is volatile or by some rare occurrence becomes worthless. Seldom is it given on the basis that the actual security of your investment could become compromised.
Allow me to make a simple analogy. Assume you put a lot of money in your bank’s safe deposit box. We generally believe most safe deposit boxes to be secure. Banks tend to have very thick walls, security systems and sensors, a fireproof and blast proof vault, and there amongst the others, a securely locked safe deposit box assigned to you. Now imagine that you could inadvertently make one very easy, but nontrivial mistake and all of that security is worthless and is effectively breached. And in as quickly as you can bat an eyelash, all of the money in that safe deposit box could be stolen and is completely unrecoverable. That is precisely what I am here to discuss with you because, in crypto, this is a very real risk. Take a deep breath, because if that increases your heart rate slightly, you are not alone.
Source/More: Holding Cryptocurrency — The Real Risks | LinkedIn
