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Read MoreThe Securities and Exchange Commission sued Coinbase in June , alleging it had illegally operated as an exchange, broker-dealer and clearing agency, and offered and sold unregistered securities. These tokens come from community members, called liquidity providers. Market volatility, regulatory changes, impermanent loss , are only some examples. Anyone in the world with the right accounts or technical knowledge can participate. Our editorial team does not receive direct compensation from our advertisers. You can invest in individual coins, such as Bitcoin and Ethereum, or you can invest in a cryptocurrency index fund.