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CRYPTO INVESTMENT RISKS

1.Volatility and Total Loss

  • Crypto asset prices can fluctuate drastically, potentially leading to total loss of your principal.
  • Crypto assets are not insured by the FDIC or any U.S. government agency.

2.Limited Regulatory Protection

  • Cryptocurrencies are typically not registered securities under U.S. law and may not be subject to SEC oversight.
  • You generally will not have recourse through the Securities Investor Protection Corporation (SIPC) or Financial Industry Regulatory Authority (FINRA).

3.Liquidity and Transaction Delays

  • There is no guarantee of a continuous market for crypto assets, and you may be unable to sell quickly.
  • Operational or technological failures (e.g., exchange outages) may delay or prevent liquidation.
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4.Complexity and Fraud Risks

  • Many crypto projects use complex technologies and tokenomics.
  • Fraud, hacking, or “rug pulls” are common in unregulated markets. Conduct thorough due diligence.

5.Diversification

  • Avoid investing all your resources in one asset class or project.
  • Diversify to mitigate losses from sudden market downturns.
  • A general guideline: do not invest more than you are willing to lose.

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