The more people hear about cryptocurrency, the more new investors are often wondering how it actually works, and specifically how the risk works. One of the questions that's been floating around among traders has been: can crypto go into negative? Or more specifically, can your balance of crypto become negative or do you owe them money if a coin breaks apart? In this article, we will explain those questions and shed some light on the risks that come with investing in digital currency, including worst-case scenarios.What Is "Going Negative" in Crypto?To know whether can crypto go negative, we first need to understand what "going negative" is. In traditional finance, you have a negative balance if you owe money - your liabilities exceed your assets. In the crypto space, a negative balance would mean that your assets are not just down to zero but somehow owe something.The quick answer: No, cryptocurrency as a whole cannot be negative in value. A token's price may fall as low as zero, but no lower. The architecture of the blockchain doesn't allow for going into negatives. So, can a crypto go negative in price? No. But there are exceptions based on how you trade, most notably in margin or leverage trading.Can You Go Negative in Crypto?You can't have a negative balance when you are buying and holding using your own money. If the value of your cryptocurrency asset went to zero, you essentially lose the amount that you originally deposited, and your balance is zero -- but not negative.But it's not the same when you're trading with leverage or margin. These are borrowed funds, where you're using funds from a broker or an exchange to increase the size of your position. When the trade moves against you significantly, you can go negative on crypto and your losses can be larger than your initial investment.So can your crypto balance go negative with leverage? Yes, but most exchanges are designed to close your position before your losses are bigger than your collateral. But in extremely volatile markets or poorly regulated exchanges, a negative balance is indeed possible.In spot markets or regular wallets, your balance won't be in the negative. You lose whatever you invest. But if you're trading derivatives or futures markets, where your positions are leveraged highly, you can turn negative if your platform doesn't close your position in time.Most major platforms, however, have safeguards. For instance, they invoke a margin call or automatic liquidation if your losses get close to your committed margin. So while the response to can your crypto go negative is technically affirmative, it's virtually impossible in actuality with major exchanges.Why Cryptocurrencies Can Lose ValueCryptos can drop to zero and lose all their value, but can crypto go into negative values? Not on a price chart. Here is the reason why a cryptocurrency can go to zero:Loss of Utility: If a token cannot maintain a use case, people will stop buying or using it.Security Flaws: Hacks or exploits on the blockchain can destroy trust.Over-supply: A vast token supply with no cap can dilute value.Lack of Demand: If no one is willing to buy the coin, its value collapses.Regulatory Pressure: Negative legal progress can have a major impact on the price.A classic case in point is the 2022 Terra (LUNA) implosion, in which the coin shed nearly 99.9% of its worth. Still, even there, it did not go negative -- it simply went valueless. Can You Owe Money in Crypto?In normal spot trading, you can't lose more than you've put in. Your losses are limited to your balance. But when you're doing margin or futures trading, you're trading on borrowed funds, so theoretically, your losses could be greater than your investment. That's where the risk comes in.Luckily, most platforms have auto-liquidation to minimize the chances of this occurring, so they close out your position before you turn red. So theoretically, you can go negative on crypto, but safety features usually prevent this from happening.How to Guard Yourself from Crypto LossesIf you are worried about can you go negative in crypto, then the best thing to do is reduce risky trading habits and follow safety best practices.Avoid Leverage Unless Experienced: Margin trading is not for beginners.Use Stop-Loss Orders: These automatically sell your position when the price drops to a specified level.Diversify Your Portfolio: Don't put all your funds into a single asset.Do Your Own Research (DYOR): Only invest in projects with solid fundamentals.Use Reputable Exchanges: Choose platforms with good liquidity and risk protection features.What Happens If a Coin Goes to Zero?If a coin you own drops to zero, your investment is worthless. But again, can your crypto be negative? Not in worth. Once the worth is at zero, it can't go any lower. You don't owe anything except if you were employing leverage.That's why an exit strategy is so crucial. If the market starts to turn or sentiment dips, smart traders know when to take profits or cut losses.SummaryCryptocurrency can be a wild and profitable investment, but it is worth being aware of the risks. While the idea of crypto going negative sounds catastrophic, the truth is that digital currencies cannot go below zero in terms of value. The worst you can lose in spot trading is your entire investment -- but you will not become indebted just by holding or trading crypto under regular conditions.The only instance you will see a negative balance is in trading with leverage or margin, where there is a risk of owing more than what you put up. Even that, however, most decent platforms will liquidate automatically to prevent your balance from going into the negative.Just as with all investment, education is your strongest weapon. Not doing things on a whim, being on a well-thought-out plan, and trading on stable platforms are what will let you surf the crypto markets safer. So even though crypto can be volatile, becoming negative is not a usual concern for most traders - if only they know what they're doing.