Embarking on your crypto journey is exciting and it is important to make sure that you know what is involved and that you are happy with the decisions that you are going to make, including the risks.
As with any financial decision, there are pros and cons, risks and benefits. As we don’t know your personal situation, we would like to give you an overview of some, but not all of the risks, that may be involved, so you can make the best choice for yourself. If you need personal advice, then it is best that you contact a professional advisor.
Most importantly, past performance is never a guarantee of future results so don’t rely on how crypto has performed to inform your view about what’s going to happen.
Considerations of Trading and Holding Crypto
Trading and holding crypto is unlike traditional currencies or other commodities. It involves significant and exceptional risks, they can be very volatile and the financial losses can be substantial. You should carefully consider and assess whether trading and holding crypto is suitable for you depending on your financial circumstances and tolerance to risk, and seek specialised advice if you need it or are unsure.
Transactions can’t be reversed: Once a transaction has been completed with us, it is impossible to reverse it.
Volatility and Market Risks: Cryptocurrencies are highly volatile, with prices that can change rapidly. Market conditions can be unpredictable, influenced by a wide range of factors, including regulatory announcements, technological developments, and market sentiment. These factors can lead to significant changes in the market price of cryptocurrencies in a short period.
Regulatory Risks: Cryptocurrencies and their trading are subject to varying regulations across different jurisdictions. Changes in laws, regulations, or regulatory interpretation can have significant impacts on the availability, value, and legality of cryptocurrencies and cryptocurrency trading. These changes may affect your ability to buy, sell, hold, or otherwise trade cryptocurrencies on our platform.
Technology and Cybersecurity Risks: Trading cryptocurrencies relies on technology, including internet-based trading platforms and wallets. Technical issues, such as software or hardware malfunctions, system failures, or cyber-attacks, may affect your ability to trade or access your assets. Despite our efforts to provide a secure environment, we cannot guarantee absolute protection against such risks.
Liquidity Risks: Cryptocurrency markets can experience periods of limited liquidity, meaning that there may not be enough buying or selling activity to match orders at your desired price. During such times, you may experience delays in executing transactions, or you may have to accept a less favorable price to complete a trade.
Risks Associated with Digital Wallets and Private Keys: Ownership of cryptocurrency is established through digital wallets and private keys. The loss or theft of your private key can result in the loss of your cryptocurrencies, which may be irreversible. You are responsible for safeguarding your private keys and access credentials to your digital wallets. EC Global Ltd does not have access to your private keys and cannot recover lost or stolen cryptocurrencies.
Counterparty Risks: Trading on our platform involves exposure to the credit risk of other participants and counterparties. If a counterparty fails to fulfill its obligations or defaults, you may suffer financial losses. While we take steps to mitigate these risks, we cannot eliminate them entirely.
No Guarantees of Profit: There are no guarantees of profit when trading cryptocurrencies. Past performance is not indicative of future results, and you should not rely on historical data as a reliable predictor of future performance. Any trading decision is made at your own risk, and you should only trade with funds you are prepared to lose.
Legal and Taxation Risks: You are solely responsible for understanding and complying with any legal and tax obligations applicable to your cryptocurrency trading activities. The tax treatment of cryptocurrencies is uncertain in many jurisdictions, and it is your responsibility to seek appropriate legal and tax advice regarding your specific situation.
Acknowledgment and Acceptance of Risks: By engaging in cryptocurrency trading through EC Global Ltd, you acknowledge that you have read and understood this risk disclosure statement and that you are aware of and accept the risks associated with cryptocurrency trading.
Amendments: EC Global Ltd reserves the right to amend this Risk Disclosure Statement at any time. Any amendments will be effective upon posting on our website or notification to you through other means.
It is important to take all of these factors into consideration when venturing into the world of crypto. No one knows your personal situation better than you, so make sure you spend time on education to make the best choices for yourself.