- Price Risk
- De-peg risk
- Smart contract risk
- 😱 Wallet Loss Risk (Self-Custody Risk)
- No Exit Liquidity
- Illiquid assets (NFTs)
- Bonus: Common Mistakes
Example: you might have heard of the recent UST de-peg.
Smart contract risk
😱 Wallet Loss Risk (Self-Custody Risk)
One risk with self-custodying crypto is the possibility of losing your keys.
This could happen if you misplaced your seed phrase, sold your laptop, got hacked or phished, etc.
An estimated 4 million Bitcoin are lost forever, in hard drives and ledgers whose keys were lost.
Tim doesn’t have a backup of his seed phrase.
No Exit Liquidity
Illiquid assets (NFTs)
If you can't find a buyer, your NFTs are worth $0.
Crypto scams come in many shapes and sizes:
Bonus: Common Mistakes
Here are 5 common crypto mistakes that can really hurt you: