Price volatility
A 24-hour market can move sharply in a short period. Separate living expenses from risk capital and never assume you can sell at a displayed price during stress.
RISK LIBRARY
Understand how loss can happen before focusing on returns
Even without a price decline, exchange outages, lost keys, contract failures or depegging can damage value or access. Separate price, trading, custody and protocol risk.
LOSS PATHS
Risk types and verification points
Several risks can occur together, so review each stage of holding, trading and depositing assets separately.
Leverage and forced liquidation
Borrowed exposure magnifies small price moves. Verify maintenance margin, liquidation price, funding costs and likely execution price during a rapid move for each venue.
Exchange and self-custody
Exchange custody carries freeze and operator-failure risk; self-custody carries loss and phishing risk. Match methods to asset size and usage and test recovery with a small amount.
Smart contracts and bridges
An audit does not guarantee the absence of vulnerabilities. Check operator privileges, upgradeability, withdrawal terms, official contract addresses and token approval scope.
Stablecoin depegging
Price stability may rely on cash-like reserves, crypto collateral or algorithms. Review reserve composition, redemption counterparties, attestations and market liquidity.
Liquidity, fraud and outages
Displayed and executable prices may differ. Treat thin markets, withdrawal suspensions, cloned websites and guaranteed-return claims as warning signs, and verify addresses and notices through multiple channels.