Hedging includes opening positions in the opposite market direction to reduce the risk and impact of market fluctuations.

Very similar to the foreign exchange market, cryptocurrency market has similar risk forms: fluctuation risk, regulatory risk, trading risk and leverage risk.

Neither the government nor the central bank regulates cryptocurrencies. Although governments and financial institutions have begun to pay attention to this point, there is still uncertainty on whether to classify it as a commodity or a virtual currency.

Communication errors and the delay of traders' order transactions may bring huge losses to cryptocurrency traders.