What are the risks associated with using Gemini and FTX for exposure to digital assets?

1 answers

• Muhammad Qasim ZeeSep 22, 2021 · 4 years ago
  Investing in digital assets on Gemini and FTX comes with certain risks. It's important to understand these risks before getting started. One of the main risks is the volatility of digital asset prices. The value of digital assets can fluctuate wildly, and this can result in significant gains or losses for investors. Another risk is the potential for hacking or security breaches. While Gemini and FTX have security measures in place, it's always possible for hackers to find vulnerabilities. It's important to take steps to protect your accounts and assets. Regulatory risks are also a concern. The regulatory environment for digital assets is still evolving, and new regulations could impact the operations of Gemini and FTX. It's important to stay informed about any regulatory changes that could affect your investments. Lastly, liquidity is a risk to consider. If there is low liquidity for a particular digital asset on Gemini or FTX, it may be difficult to buy or sell the asset at the desired price. It's important to consider the liquidity of the assets you're interested in before making investment decisions.
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