The main risks of cryptocurrencies
Volatility, irreversible transfers, scams, lost keys and project risks — what to know before you use crypto.
Cryptocurrencies give people new possibilities, but they also carry risks that do not exist, or are smaller, with traditional money. Understanding them is the first step to using crypto safely.
Volatility
Prices can change by tens of percent in a day. Smaller coins are usually even more volatile than Bitcoin or Ethereum. Never use money that you cannot afford to lose.
Irreversible transfers
A confirmed blockchain transaction cannot be cancelled. If you send funds to a wrong address, on the wrong network or to a scammer, there is usually no way to get them back.
Scams and fraud
Fake support agents, phishing websites, "guaranteed profit" schemes and fake giveaways are common. Read Common crypto scams to learn how to recognise them.
Losing access
If you hold your own keys and lose your seed phrase, nobody can restore your wallet. If you use a service, a lost password or email account can lock you out.
Project and technology risks
Software can have bugs, smart contracts can be hacked, and a project can be abandoned. Stablecoins can lose their peg. A coin being listed on an exchange does not mean it is safe.
Rules and taxes
Laws about cryptocurrencies differ between countries and can change. Check what applies where you live.
University materials are for education only and are not investment, legal or tax advice.