The negative outcomes of trading cryptocurrencies mainly focus on three core aspects: high-risk losses, legal and compliance risks, and asset security risks.

1. Sharp Price Fluctuations Leading to Massive Losses
The cryptocurrency market lacks effective regulation and pricing anchors. Prices are heavily influenced by policies, market sentiment, and manipulations by large players. Sudden crashes or even zeroing out happen frequently, making it easy for ordinary investors to lose everything.

2. Legal and Compliance Risks
Most countries and regions do not clearly define the legal status of cryptocurrencies. Some areas directly restrict or ban cryptocurrency trading. Participants may face risks such as funds being frozen or administrative penalties; additionally, cryptocurrency transactions are not legally protected, and disputes are difficult to resolve through judicial channels.

3. Prominent Asset Security Hazards
Cryptocurrency trading platforms have risks of technical vulnerabilities, hacking attacks, and platform insolvency. If a platform encounters issues, investors' assets may be unrecoverable. Losing or having your private key stolen can also lead to permanent loss of cryptocurrency assets, with no way to report or recover.

4. Leverage Trading Amplifies Risks
Many platforms offer high leverage trading, which can magnify gains but also exponentially increase losses. In extreme market conditions, investors may incur debts far exceeding their principal in a short period.

5. Liquidity Risks
Some niche cryptocurrencies have low trading depth. When investors want to sell, they may not be able to execute trades promptly or may have to sell at prices far below expectations, resulting in additional losses.

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