They do not seem to care about the risks involved in investing in cryptocurrencies. However, stories of people getting richer day by day due to investing in such currencies have come to the fore.

Here are eight key risks to investing in cryptocurrencies, including Bitcoin.

First : the value of the cryptocurrency has fallen at the same rate as it has risen. However, most investors do not know the reason for the decline in its value. Then they sell in a hurry and lose their hard-earned money. In the last two months alone, the value of Bitcoin has dropped from Rs 65,000 to about Rs 30,000.

Second: Trading of such currencies is illegal in our country Nepal. The government has not given any recognition to cryptocurrency. The government has already taken action against such traders and gangs engaged in cryptocurrency mining in Nepal. Not only that, the government had also monitored some fintech companies for being involved in bitcoin trading. Therefore, the investment made in it seems to be legally risky.

Third : the government has always been aware of the possibility of money laundering using cryptocurrency. As this could endanger the security of the country, the state treats its traders as criminals. That is why the relationship with cryptocurrency seems to be unfavorable.

Fourth: The value of the cryptocurrency has been greatly affected by even the smallest international events. A few days ago, Alan Musk, the owner of the world's richest Tesla company, tweeted about Bitcoin, which caused its price to fall sharply. In such a case, small investors have to bear huge losses.

Fifth: Concerns about cyber security have been growing globally in recent days. In this case, the business of cryptocurrency is naturally at risk. Because such currencies are transacted through a code or password. If someone forgets that code or password, that currency is lost forever.

Sixth: Most people invest in cryptocurrencies through apps like Wazir X, Uno Coin, Coin DC X, Pocket Pay, Coin Switch Cover. However, these apps do not have the strong conditions required for this type of investment. So the alarm goes off.

Seventh: The biggest risk seen in cryptocurrency is that there are no rules about it yet. There is no country, government or institution to control or regulate it. So its value sometimes skyrockets and sometimes falls faster than that. Therefore, investing in cryptocurrencies is no less risky than traveling on a wrecked ship.

Eighth: The risk of cryptocurrency fraud is just as high. Between October 2020 and May 2021, 7,000 people were involved in cryptocurrency fraud, according to figures released by the US Federal Trade Commission.