Investing in stocks can help grow your wealth over the long term, but it's important to understand the risks before you start.

General risks of investing in stocks

• Market volatility: Stock prices rise and fall constantly. Factors like economic news, company earnings, or global events can cause sharp changes in the value of your investments.
• Capital loss: There's a chance you could lose part or all of the money you invest. If you sell your stocks after their price has dropped, your losses become permanent.
• Liquidity risk: Some stocks can be hard to sell quickly without affecting their price, especially those of small companies or with low trading volume.
• Company risk: If the company you invest in has financial trouble, poor management, or loses competitiveness, the value of its stock can drop significantly.
• Sector risk: Entire industries can be affected by regulatory, technological, or consumer preference changes, impacting every company in that sector.

Risks of trading through a foreign broker

Bitso uses Alpaca Securities LLC, a US broker regulated by FINRA and the SEC, to process stock buy and sell orders. This involves additional risks you should consider:

• Currency risk: Exchange rate fluctuations between your local currency and the US dollar can affect the value of your investment. Even if your stocks go up in price, you could lose money if the dollar depreciates against your currency when you sell.
• Foreign regulation: Your stock investments are subject to US regulation, not your country's. While the US has a robust regulatory framework, its protections and dispute resolution processes differ from local ones.
• Legal jurisdiction: In case of a conflict or issue with your investments, you'd be subject to US laws and courts, which can make resolving any dispute harder and more costly.
• Tax implications: You must comply with your country's tax obligations for gains from selling stocks. It's your responsibility to report these gains to the relevant tax authorities.
• Intermediary risk: While Bitso facilitates access, trades are processed through Alpaca. If Alpaca faced operational or regulatory issues, it could temporarily affect your ability to trade or access your investments.
• Trading hours: Stocks trade according to US market hours, which may not match your usual time zone.

Recommendations before you invest

• Only invest money you won't need in the short term.
• Diversify your investments to reduce risk.
• Understand how the relationship between Bitso and the broker that processes your trades works.
• Get familiar with the terms and conditions on asset custody and dispute resolution.
• Consult a tax advisor about your tax obligations.
• Consider the impact of exchange rates on your investment decisions.

Remember that all investments carry risk and there's no guarantee of profit. The higher the potential gain, the higher the risk usually involved.