Cryptos come with risks of their own. A coin can become almost worthless, since there is often no company with revenue behind it. On top of that come fraud, hacked or insolvent exchanges and costs that are easy to overlook: trading fee, and, when withdrawing, a . Only use money whose loss you can bear.
Total loss is real
Many small coins lose almost all their value after a hype, some are discontinued altogether. Even large cryptos have fallen more than 70% from their high several times in the past. Nobody promises that a price will recover.
Spotting fraud
Warning signs are fixed high returns, time pressure, withdrawals only against a new deposit, supposed celebrities and contact through chats or dating apps. In a pump-and-dump, a small coin is hyped so that the initiators can sell high to latecomers. High returns without risk do not exist in any market.
Keeping an eye on costs
Each buy and sell incurs a trading fee and the spread. When withdrawing to your own wallet, the network fee comes on top; it often depends on how busy the network is, not on the amount. For crypto our tests calculate 0.10% fee plus 0.10% per side, for stocks 0.10% plus 0.05%.