common-close-0
BYDFi
Trade wherever you are!

What are the risks associated with holding marketable securities in the digital asset space?

avatarGoldstein ThomasenDec 27, 2021 · 3 years ago3 answers

What are the potential risks that investors should be aware of when holding marketable securities in the digital asset space?

What are the risks associated with holding marketable securities in the digital asset space?

3 answers

  • avatarDec 27, 2021 · 3 years ago
    Investors should be aware of the volatility and price fluctuations that are common in the digital asset space. The value of marketable securities can change rapidly, leading to potential losses if the market goes against the investor's position. It is important to carefully monitor the market and have a clear understanding of the risks involved before investing in digital assets.
  • avatarDec 27, 2021 · 3 years ago
    One of the risks associated with holding marketable securities in the digital asset space is the potential for hacking and security breaches. Digital assets are stored in online wallets and exchanges, which can be vulnerable to cyber attacks. Investors should take steps to secure their assets, such as using strong passwords, enabling two-factor authentication, and keeping their private keys offline.
  • avatarDec 27, 2021 · 3 years ago
    In the digital asset space, there are also regulatory risks that investors should consider. Different countries have different regulations and laws regarding digital assets, and these regulations can change over time. Investors should stay informed about the regulatory landscape and ensure that they are compliant with the laws of the jurisdictions in which they operate.