Risk of loss in trading cyptrocurrency can be substantial. You should, therefore, carefully consider whether such trading is suitable for you in light of your circumstance and financial conditions. Investments may face risks including, but not limited to the following:
1.Macroeconomic risks: Due to changes in the macroeconomic situation of countries around the world and changes in the macroeconomic environment and cryptocurrency trading markets of various countries, fluctuations in the price of cryptocurrency may occur, which may cause you to lose money.
2.Policy risk: Changes in laws, regulations and related rules may cause fluctuations in the price of cryptocurrency, which may cause you to lose money.
3.The operating risks of the cryptocurrency project itself: due to changes in the overall operating situation of the industry in which the cryptocurrency project is located; due to factors such as the management of cryptocurrency project parties, such as major operational decision-making mistakes, changes in senior management personnel, major litigation, etc. It may cause fluctuations in the price of the cryptocurrency; due to poor management of the cryptocurrency project party and even the suspension and delisting of the cryptocurrency by the exchange, these may cause you to lose money.
4.Technology risk: Since the transaction matching, clearing and settlement, market disclosure and bank transfer of each cryptocurrency exchange are realized through electronic communication technology and computer technology, these technologies may be attacked by cyber hackers and computer viruses. At the same time, communication technology, computer technology and related software have the possibility of defects, these risks may bring you losses or the funds transfer funds can not be immediately received.
Since there is an time difference between the cryptocurrency exchange host and the investor host, if your commission time is earlier or later than the cryptocurrency exchange server time, there will be a risk against your commission.
5.Risk of entrustment
Online delegation or other entrustment methods also include but are not limited to the following risks:
(a) Due to Internet and mobile communication network data transmission and other reasons, trading orders may be interrupted, paused, delayed, data errors, etc.;
(b) Customer account and password information disclosure or customer identity may be counterfeited;
(c) Due to the possibility of malicious attacks by hackers on the Internet and mobile networks, network servers may malfunction and other unpredictable factors, and market information and other cryptocurrency information may be wrong or delayed;
(d) The client's network terminal equipment and software system may be subjected to illegal attacks or virus infections, resulting in the failure of delegation, delegation failure or the theft of user's account and password by malicious programs;
(e) The customer's network terminal equipment and software system are incompatible with the online transaction system provided by the cryptocurrency exchange, the online transaction authentication method, or the customer's own mobile phone, such as power failure, insufficient battery, etc. The commission failed; the relevant economic loss caused by the customer losing the network terminal equipment or being illegally used by others;
(f) If the customer lacks online commissioning experience, the commission may fail or the commission may be mistaken due to improper operation.
(g) Due to network failure, when the customer conducts cryptocurrency transaction through the system of the cryptocurrency exchange, the client network terminal device has shown that the commission is successful, and the server of the cryptocurrency exchange has not received the commission instruction, so that the customer cannot buy. And the risk of selling; the client network terminal device does not show success for its commission, so the client issues the commission instruction again, and the server of the cryptocurrency exchange has received the client two orders and executed the transaction according to the instruction, so that the client This creates the risk of repeated trading.
(h) Other non-cryptocurrency exchanges cause customers to fail to conduct normal cryptocurrency transactions and inquiries.
6.Risk of online entrusted authentication
If you choose to use the online proxy authentication methods provided by cryptocurrency exchange, including but not limited to digital certificates and dynamic passwords, the following risks may exist:
(a)If the authentication medium such as digital certificate or dynamic token is expired, damaged or battery is exhausted, lost or embezzled, or the hardware device is damaged, lost or stolen, it may result in you failing to successfully conduct cryptocurrency transactions, fund transfers or even account theft or other risks and losses, and you will have to bear the resulting losses and inconvenience.
(b)If the authentication medium such as digital certificate and dynamic token selected by you is out of date, damaged or the battery is exhausted or lost, the corresponding authentication method cannot be used normally. You can use the SMS authentication code as the emergency authentication method for online entrustment. , thus the following risks may exist:
Firstly, the contact information you reserved in the Digital Monetary Exchange is inaccurate, or your mobile phone can not receive short messages due to signal and other problems, resulting in the failure of receiving SMS authentication code;
Secondly, due to the reasons of the mobile operator, such as peak congestion, network interruption, etc., the short message transmission speed is slow, the transmission is interrupted, and the transmission information is lost, resulting in failure of the SMS verification code reception;
Thirdly, due to problems with your own mobile phone, such as power outages, insufficient battery, etc., you cannot send and receive SMS verification codes normally, which may result in you not being able to conduct cryptocurrency transactions and inquiries;
Fourth, other non-cryptocurrency exchanges cause the SMS verification code to be unable to be sent and received normally, resulting in the inability to conduct cryptocurrency transactions and inquiries;
Fifth, the related economic losses caused by your lost mobile phone or illegal use by others.
(c)Each online delegation authentication method provided by the Digital Monetary Exchange is suitable for specific online delegation software and authentication medium. If you choose digital certificate, dynamic password and other online delegation authentication methods, it may cause the original transaction password and communication password to be invalid. Therefore, before applying for online authorization, you must know whether the online authorization software and media you are using are suitable for this authentication method, otherwise you will have to bear the responsibility of influencing your cryptocurrency transactions and inquiries because the downloaded online authorization software and media can not be used properly.
7.Other risks: Due to the loss of your password, improper storage of digital certificates, improper operation, mistakes in investment decisions, etc., you may suffer losses; online entrustment, hotkey entrustment and other self-service entrustment methods do not exit in time, the loss caused by malicious operations; online transactions may also encounter hacker attacks, resulting in losses;Entrust others to represent cryptocurrency transactions, and do not pay attention to account changes for a long time, causing losses caused by malicious actions of others; you may suffer losses due to your neglect of illegal network cryptocurrency fraud activities; losses caused by other accidents. The above losses will be borne by you. When you make a cryptocurrency transaction, any promise that someone else gives you a guarantee of profit or no loss is unfounded, and a similar commitment will not reduce your chances of losing money.
- BitcoinBase(BCB) advises investors, please cooperate with the cryptocurrency exchange to assess the risk tolerance, and objectively judge whether the risk tolerance of the company matches the risks of various financial products involved in the cryptocurrency transaction, and prudently invest.
- The cryptocurrency market is a market full of risks. There is a possibility of profit when you are trading in a cryptocurrency, and there is also a risk of loss. This risk disclosure does not reveal the full range of risks involved in cryptocurrency transactions and the full picture of the cryptocurrency market. You must have a clear understanding of this and seriously consider whether to conduct cryptocurrency transactions. When you decide to participate in a cryptocurrency transaction, please be sure to read the risk disclosure carefully.
Cryptocurrency is risky and you need to be cautious when entering the market!