As cryptocurrency enthusiasts, one should understand several risks associated with holding, trading, or investing in digital assets. Crypto investment is just similar to other types of investment. It requires an extensive understanding of the market, especially the underlying risks that go with a volatile market like cryptocurrencies. It is important that users know what they are treading into, to lessen the chances of fraud and other problems that may arise. That being said, we would like to stress that the products and services offered by Blockchain Commodities are all blockchain-based. More so, all these products that leverage crypto assets, have high risks. For this reason, we hereby represent our Risk Disclosures, along with some points that users should consider before investing in virtual assets.
Do your own research. As a trader, it is important to have vast knowledge about cryptocurrencies or blockchain. Doing your own research, alongside learning from key opinion leaders will help you in your investment journey.
2. Don't invest what you can't afford to lose.
This is a common phrase that is shared between communities. It simply means that one should never invest money that they can’t afford to lose—especially in an untimely circumstance.
3. Be prepared and understand the limitations.
Be reminded that investing in cryptocurrencies is a bit different from traditional stock markets—it has no trading hours and the fluctuations happen at any time. Since it is still in the early stages, one should also be aware of the cause and effect of news and events that might trigger cryptocurrency prices.
All investments entail financial risks. This Risk Disclosure may not contain all the risks involved with cryptocurrency trading; therefore, users need to make sure that every decision they make is based on an informed basis.
Cryptocurrencies or digital assets are relatively new industries alongside blockchain technology. As for the risks underlying the technology that runs these, there may be loss, theft, or destruction of private keys that may result in an irreversible loss of the funds.
There are several fees needed to perform a transaction on the blockchain network. A fee is needed to ensure that the transactions are recorded on the blockchain or distributed ledger. These fees are also volatile—they can increase or decrease depending on the market activity, for example, in crypto exchanges, wallets, etc.
There are unforeseen circumstances in a volatile industry. Hippo Wallet’s product and service prices are generated from the existing prices and liquidity in several crypto exchanges, blockchain networks, and market activities. In other words, the fees vary depending on the market or network circumstances while unforeseen technical difficulties or system errors may also affect the execution of orders or transactions on Hippo Wallet.
All services on crypto assets offered by Blockchain Commodities are executed via smart contracts. Buying, selling, trading, swapping, and holding crypto assets are not always done in a regulated environment. Since it is on the blockchain, it is completely decentralized with no validator like a central bank. This means that crypto assets are extremely high-risk assets and investors should be really careful and confident when investing because these risks may lead to gaining profits or significant losses.