Cryptocurrency Risks: What You Need to Know Before You Invest

When you buy a cryptocurrency, a digital asset built on blockchain technology that can be traded, stored, or used in decentralized applications. Also known as crypto, it promises fast returns—but also carries hidden dangers most beginners never see. Not every coin is a winner. In fact, most are built on thin air. Take NFMart (NFM), a token claiming to help creators build NFT marketplaces, but with a market cap under $200K and a 99.79% price crash since 2022. Or BNB BUNNY (BNBBUNNY), a token with zero trading volume, no team, and no real purpose. These aren’t outliers—they’re the norm. The crypto space is flooded with tokens that look like investments but function like gambling chips.

One of the biggest cryptocurrency risks is mistaking hype for value. Memecoins like Landwolf 0x67 (WOLF), a token tied to a comic series with no utility or development team, trade on memes and social media noise, not fundamentals. Then there are fake platforms. iExchange, a calculator app masquerading as a crypto exchange, tricks users into thinking they can trade, when they can’t even deposit funds. And don’t forget DeFi risks, like leveraged trading on protocols such as OpenLeverage (OLE), where a small market move can wipe out your entire position. Even stablecoins like XTUSD carry hidden risks if they’re not properly audited or backed. These aren’t hypotheticals. People lose money on these every day.

Regulation adds another layer of danger. In places like Myanmar, the government doesn’t just ban crypto—they shut down your bank account. In Iran, using a VPN to trade crypto can still get you tracked. And in Kazakhstan, the power grid collapse led to a full mining ban. What’s legal today might be illegal tomorrow. Meanwhile, new tokens keep popping up—over 18,000 active cryptocurrencies in 2025, and millions more if you count dead or spam tokens. How do you know which ones are real? You don’t. That’s why understanding the risks isn’t optional—it’s survival. Below, you’ll find real breakdowns of tokens that failed, exchanges that lied, and systems that collapsed. No fluff. Just facts to help you avoid the same mistakes.