Crypto Risks Remain Significant for Beginner Investors
Cryptocurrency can be used by beginners, but it carries significant security and financial risks. According to TRM Labs, cybercriminals stole USD 972 million through 207 crypto hacks in H1 2026. The number of incidents more than doubled from 83 in H1 2025.
The FBI's 2025 Internet Crime Report warns that Americans submitted 181,565 complaints involving cryptocurrency, reporting more than USD 11 billion in losses. Cryptocurrency investment fraud alone accounted for approximately USD 7.2 billion.
Beginners hold crypto through custodial exchanges or self-custody wallets. A custodial platform manages private keys for users, simplifying access and recovery but creating dependence on the company's security, solvency and withdrawal policies. Self-custody gives users direct control of their keys, removing some counterparty risk.
However, losing a recovery phrase or exposing a private key can permanently compromise access. Transactions can be irreversible, and blockchain transactions generally cannot be reversed by customer support.