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Can You Lose Cryptocurrency?

WEB Unfortunately, yes, you can lose cryptocurrency.

But not because a coin's value can sink so low that it's underwater. Rather, cryptocurrencies themselves are vulnerable to being stolen, lost, or hacked.

Negative crypto balances occur when the value of your crypto holdings drops below zero. In simpler terms, it means that you owe more in cryptocurrencies than you currently own.

Hence, it is impossible for fiat currencies to have a negative value. Given their decentralized nature, the value of cryptocurrencies comes from the trust and confidence of their users.

Negative balances in crypto typically occur in margin trading, where investors borrow funds to invest in cryptocurrencies. If the value of the cryptocurrencies falls significantly, the investor may end up owing more than they initially invested.

But the cryptocurrency also creates a wide array of concerns. Some worry that bitcoin is a bubble too risky to invest in or susceptible to fraud, to name a few. CNBC Make It spoke to bitcoin experts to address these concerns and provide tips on how to protect your cryptocurrency investments.