If you haven't been following the history of Bitcoin and other cryptocurrencies, you might not know that it's prone to wild swings in value. Sometimes the bottom drops out suddenly, and sometimes it spikes in value by double or more.It's that volatility that is prime on Coinbase's risk factors list.Our operating results have and will significantly fluctuate due to the highly volatile nature of crypto, the filing reads. All of our sources of revenue are dependent on crypto assets and the broader cryptoeconomy. Due to the highly volatile nature of the cryptoeconomy and the prices of crypto assets, our operating results have, and will continue to, fluctuate significantly from quarter to quarter in accordance with market sentiments and movements in the broader cryptoeconomy.This volatility is the foundational risk of Coinbase.With Bitcoin and Ethereum trades forming the foundation of Coinbase's business, the company has a lot riding on the ongoing popularity of two cryptocurrencies.Though Coinbase says it supports a diverse portfolio of crypto assets, Bitcoin and Ethereum trades made up 56% of the company's total trading volume in 2020. As such, the majority of our net revenue from transaction fees, Coinbase says, was derived from just two cryptocurrencies. Should those cryptocurrencies fall out of favor and not be replaced by something else, Coinbase would lose the majority of its business.Coinbase is a cryptocurrency trading platform that depends entirely on international computer networks to function. Since cryptocurrency is an asset, it is particularly attractive to nefarious actors.The axis of those two risks is where Coinbase operates. To that end, the company says its business, involves the collection, storage, processing, and transmission of confidential information, customer, employee, service provider, and other personal data, as well as information required to access customer assets.If hackers were to breach the company's security, it could materially damage Coinbase's standing with its customers. We have built our reputation on the premise that our platform offers customers a secure way to purchase, store, and transact in crypto assets, the filing says. It's still early days for cryptocurrency regulation from federal regulators, and Coinbase considers that unknown future to be a major risk factor.We are subject to an extensive and highly-evolving regulatory landscape, the filing says, and any adverse changes to, or our failure to comply with, any laws and regulations could adversely affect our brand, reputation, business, operating results, and financial condition.Beyond cryptocurrency regulation itself, Coinbase operates in the financial services world, and that makes it subject to other types of regulation.These legal and regulatory regimes ... evolve frequently and may be modified, interpreted, and applied in an inconsistent manner from one jurisdiction to another, and may conflict with one another, the filing says. Moreover, the complexity and evolving nature of our business and the significant uncertainty surrounding the regulation of the cryptoeconomy requires us to exercise our judgement as to whether certain laws, rules, and regulations apply to us, and it is possible that governmental bodies and regulators may disagree with our conclusions.In the next few years, Coinbase has plans to expand — and that expansion is expected to cost a significant amount of money.We anticipate that our operating expenses will increase substantially in the foreseeable future, the filing says, as we continue to hire additional employees, expand our sales and marketing efforts, develop additional products and services, and expand our international business.Moreover, those growth expenses could potentially cost Coinbase profitability on a consistent basis, the filing says. As of the end of 2020, Coinbase counted 43 million verified users of its platform. Of that 43 million, just shy of 3 million were making monthly transactions on the platform.More specifically: Just 6.5% of Coinbase users are actually using the platform to transact.That dependence on a small percentage of the overall userbase is a major risk, the company says.A loss of these customers, the filing says, or a reduction in their Trading Volume, and our inability to replace these customers with other customers, could have an adverse effect on our business, operating results, and financial condition.Bitcoin was created by a person or people going by the name Satoshi Nakamoto.That name shows up three times in Coinbase's filing document, but only one instance of its appearance is particularly interesting: When the company highlights that he's a risk factor to its business.The identification of Satoshi Nakamoto, the filing says, the pseudonymous person or persons who developed Bitcoin, or the transfer of Satoshi's Bitcoins, could result in major destabilization. At least part of that is due to the massive cache of bitcoin that Nakamoto is said to have mined early on. If that cache were to be sold or transferred, it could have huge impacts on the entire bitcoin marketplace. Got a tip? Contact Insider senior correspondent Ben Gilbert via email (email@example.com), or Twitter DM (@realbengilbert). We can keep sources anonymous. Use a non-work device to reach out. PR pitches by email only, please.