Risk Disclaimer
Last updated: February 2026
High Risk Investment Warning
Cryptocurrency trading involves substantial risk of loss and is not suitable for all investors. The value of cryptocurrencies can decrease as well as increase, and you may lose all of the money you invest. Past performance is not indicative of future results. You should never invest money that you cannot afford to lose.
1. No Financial Advice
The content published on CryptoEdge (cryptoedge.exchange) is provided for informational and educational purposes only. Nothing on this website constitutes financial advice, investment advice, trading advice, or any other form of advice. You should not treat any of the website's content as such.
CryptoEdge does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions.
2. Cryptocurrency Volatility Risk
Cryptocurrency prices are highly volatile. The value of a cryptocurrency can change dramatically in a very short period of time. Factors that can influence cryptocurrency prices include, but are not limited to:
- Regulatory announcements and government actions
- Technological developments and security vulnerabilities
- Market sentiment and media coverage
- Macroeconomic factors and changes in traditional financial markets
- Actions of large holders ("whales") and market manipulation
- Exchange listings and delistings
Historical price declines of 50%, 80%, or more from peak values have occurred repeatedly across the cryptocurrency market. Such declines can happen rapidly and without warning.
3. Leverage and Derivatives Risk
Trading cryptocurrency derivatives, including futures, perpetual contracts, options, and margin products, carries significantly higher risk than spot trading. When using leverage:
- Losses can exceed your initial deposit.
- Positions can be liquidated automatically if the market moves against you.
- Funding rates can erode returns on positions held over time.
- High leverage can result in the complete loss of your margin in a very short time.
The majority of retail traders who use leveraged cryptocurrency derivatives lose money. Leveraged trading is not appropriate for most retail investors.
4. Exchange and Platform Risk
Storing cryptocurrency on an exchange carries risks that are distinct from market risk:
- Hacking and security breaches: Exchanges have been hacked, resulting in the loss of user funds. While major exchanges invest heavily in security, no platform is immune.
- Exchange insolvency: Exchanges can become insolvent or cease operations, potentially resulting in the loss of user funds. Unlike bank deposits, cryptocurrency holdings on exchanges are generally not covered by government deposit insurance schemes.
- Withdrawal restrictions: Exchanges may impose withdrawal restrictions during periods of high volatility, regulatory action, or financial difficulty.
- Technical failures: Trading platforms can experience outages, particularly during periods of high market volatility when you may most need to act.
5. Regulatory Risk
The regulatory environment for cryptocurrency is evolving rapidly and varies significantly by jurisdiction. Regulatory changes can affect:
- The legality of owning or trading certain cryptocurrencies
- The ability of exchanges to operate in specific jurisdictions
- Tax treatment of cryptocurrency gains and losses
- Access to banking services for crypto-related businesses
You are responsible for understanding and complying with the laws and regulations applicable to you in your jurisdiction.
6. Technology Risk
Cryptocurrency transactions are irreversible. If you send cryptocurrency to the wrong address, or if your private keys are lost or stolen, the funds cannot be recovered. Smart contract bugs, blockchain forks, and other technical issues can also result in the loss of funds.
7. Accuracy of Information
While we make reasonable efforts to ensure the accuracy of information on this Site, including exchange fees, features, and regulatory status, we cannot guarantee that all information is current or accurate. Exchange terms and conditions change frequently. Always verify information directly with the relevant exchange before making decisions based on it.
8. Affiliate Links
This Site contains affiliate links to cryptocurrency exchanges. We may receive a commission when you sign up via these links. This does not affect the fees you pay or the bonuses you receive. See our Affiliate Disclosure for full details.
9. Seek Professional Advice
Before making any cryptocurrency investment or trading decision, consider seeking advice from a qualified financial advisor, accountant, or legal professional who is familiar with the laws and regulations applicable to your situation.