7. Cryptocurrency Security and Risks
So, now you know what cryptocurrency is and how it works, but what are the risks associated with it? Like with stocks, or the purchase of any intangible asset (i.e. one you can’t touch or hold), there is the risk that the value of your cryptocurrency could plummet unexpectedly. Cryptocurrency exchange markets are not infallible and might even fall susceptible to bankruptcy and total loss of value. In addition, there is the risk that your cryptocurrency could be defrauded or stolen from you (via hackers and fraudsters running sketchy pyramid schemes). If you’re thinking of buying bitcoin, make sure you do your research and take all the precautions you can!