4 Reasons Dave Ramsey Says Crypto Is Putting Your Money at Risk

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Not everyone is on board with the crypto frenzy. In fact, financial guru Dave Ramsey still does not subscribe to the hype of this relatively recent investing trend.

Regarding the volatility of the crypto market, Ramsey has written, “There’s no one reason for crypto’s dramatic crash and burn. But the biggest pieces of the crypto crash puzzle are inflation, recession fears, more regulation and government crackdowns on crypto mining, and fading confidence in cryptocurrency investments. When you put all those pieces together, it spells trouble for anyone who bet the farm on crypto.”

Here are a few key reasons why Ramsey warns against investing in crypto.

Reason 1: It’s Simply Way Too Much Risk

The bestselling author and founder of Ramsey Solutions, a company that educates and provides financial counseling, warns against investing in digital currency. In an article posted on its website, the company strongly advises not getting involved with crypto.

Ramsey is clear about avoiding crypto and not getting tempted by the buzz. He said, “Crypto is not a safe investment. You could lose your shirt (and pants) messing around with crypto. Steer clear … Crypto is risky business.” 

Ramsey Solutions acknowledged that people have made money from investing in digital currency — but at high odds. “Yes, some people made lots of cash investing in crypto, but it’s all based on speculation — which is just a step above gambling.”

Reason 2: Crypto Is Very Volatile

“Crypto’s value swings way up only to come plunging back down, and you never really know what you’re going to get each day,” said Ramsey’s staff. “Someone sneezes and the price drops! And unlike stocks that rise and fall based on a company’s performance, crypto goes up and down based purely on speculation.”

Reason 3: There’s an Unproven Rate of Return

Investing in crypto has been compared to the Wild West by Ramsey. “You can’t figure out the changes or calculate returns like you can with growth stock mutual funds. There just isn’t enough data, or enough credibility, to create a long-term investing plan based on cryptocurrency.”

Reason 4: Nobody Really Knows About Crypto

Ramsey Solutions has pointed out that crypto has a secretive backstory, and it’s hard to believe any “experts” in the field.

The company said, “Crypto lives up to its name in that it’s pretty cryptic. Think about it: Nobody even knows who founded Bitcoin! Only a small percentage of people in the world really understand the blockchain technology crypto is based on. And ignorance makes you vulnerable.”

Potential Pros and Cons of Investing in Crypto

Ramsey’s stance on cryptocurrency comes with an air of credibility. However, if you are still on the fence as to whether this could be the right investment strategy for your risk tolerance, here are some pros and cons to consider:

Pros 

• Many cryptocurrencies have historically seen significant price appreciation and high returns.
• Crypto assets can help diversify your portfolio due to their low correlation with other asset classes like stocks and bonds.
• Investing in crypto can provide exposure to the underlying blockchain technology and innovation, which has the potential to disrupt various industries.
• A decentralized financial system can be beneficial and potentially reduce your reliance on traditional financial institutions and banks.

Cons

• Cryptocurrency prices are known for their extreme volatility, as they often fluctuate dramatically and unpredictably. There are never guarantees when investing, but crypto takes that notion to a whole new level of potential losses.
• The largely unregulated nature of the crypto market can make it susceptible to security risks such as fraud, scams and cyberattacks.
• The technology behind cryptocurrencies can be complex and confusing, which may make you feel like you have less than a full understanding of the risks involved.

Final Take To GO: Better Options

Instead of taking a chance on crypto in 2025, Ramsey Solutions suggests putting 15% of your income in growth stock mutual funds. However, Dave Ramsey is known for his hard stance against debt, so only take this advice if you’re out of debt and have a 3-6 month emergency fund, as well.

Caitlyn Moorhead contributed to the reporting for this article.

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