A BEGINNER QUESTION

What are the risks of cryptocurrency?

Crypto assets can carry substantial risk. Prices may change quickly; a wallet key can be lost or stolen; a platform can fail; and scammers may use crypto to move money that is difficult to recover. The risks depend on the particular asset and how it is held.

Risks worth understanding first

Price volatility means the value of an asset can rise or fall sharply. Custody risk concerns who controls the keys and what happens if they are lost or a provider fails. Security risk includes hacked accounts, phishing, and exposed recovery phrases. Fraud risk includes false promises and impersonation.

These risks do not disappear because an asset uses blockchain. Research what a product is, what rights it provides, the fees involved, and which protections apply before deciding whether it fits your circumstances.

PSM’s role

PSM focuses on education instead of telling people what to buy or sell. Its free beginner resources and community can help you understand terminology and ask informed questions. They are not a substitute for personalized financial, legal, or tax advice.

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Sources for the educational explanations

Reviewed October 5, 2026. PSM’s purpose and free community are described on this site. Educational information is not individualized financial, legal, or tax advice.