Simple trading of Bitcoin, Ethereum and other cryptocurrencies.

Risks in trading with cryptocurrencies

• Cryptocurrencies are subject to particularly high price fluctuations. Investors can therefore suffer considerable losses within a very short time (market price risk).
• Immediate tradability cannot be guaranteed. Investors may not be able to sell their positions immediately or only by realising a significant price loss (liquidity risk).
• The cryptocurrencies held by the issuers as collateral are stored in wallets by securing private cryptographic keys. Loss of or improper handling of these keys may result in the complete loss of the ability to access the crypto holdings. Lost, unsecured keys cannot be recovered, which may result in losses for the investor (custody risk).
• At Scalable Broker, exchange-traded securities (exchange-traded products, or ETPs for short) are offered that track the value of cryptocurrencies. These products are bearer bonds of the issuer. The investor thereby receives a claim to a payment or to the delivery of an underlying by the issuer. Should the issuer become insolvent and a possible collateralisation of the product not be of value, the investor can thus suffer a considerable loss up to a total loss (issuer risk).
• There is also the risk that access to cryptocurrencies is influenced by changing political, legal and regulatory framework conditions. This can have an impact on the value and tradability of cryptocurrencies (legal and political risks).