At MadCrypto, we obviously believe that cryptocurrencies are the future. That being said, any individual considering an investment in cryptocurrencies should know that there are risks involved with any cryptocurrency-related activity.
The legal classification of cryptocurrencies may not be clear and may vary under the laws of different jurisdictions throughout the world. Whether cryptocurrency may constitute ‘property’, an ‘asset’, or a ‘right of any kind’ might vary from one jurisdiction to another.
This can mean that the legality of cryptocurrencies in a specific jurisdiction may be uncertain. You should inform yourself on how cryptocurrencies will be addressed, regulated, and taxed under the law applicable to your specific circumstances.
Cryptocurrencies haven’t found a perfect product-market fit yet, which means that their value is highly subjective. Cryptocurrencies are a unique type of asset, backed by technology and trust. Cryptocurrencies are a largely unregulated global system of service providers and individuals. Investing in crypto means putting your trust in a digital, decentralized, and partially anonymous system that relies on peer-to-peer networking and cryptography to maintain its integrity.
Market prices for cryptocurrencies can be highly volatile and unpredictable. Whether the future market price for a cryptocurrency will move up or down is unknowable. There is no central bank that can take corrective measures to protect the value of a cryptocurrency. These are all inherent features of cryptocurrencies and you should understand that while your investment can multiply itself by a factor of 100, you can also lose your investment completely.
Counterparty risk is the probability that the other party in an investment, credit, or trading transaction may not fulfill its part of the deal and may default on the contractual obligations. Basically, this means that when you engage in a financial relationship with a third party, they might not do what they said they will. Unfortunately, there have been multiple exit scams in crypto in the past that no one could have predicted, and this situation can always happen again. We do our best to highlight any concerns with a business in our reviews, but we cannot predict the future. Ultimately, the choice of which party to do business with is yours and yours alone.