This thesis explores the volatility of cryptocurrencies through the analysis of key financial risks. The study begins with a detailed overview of blockchain technology and the history of cryptocurrencies, discussing their characteristics and differences compared to traditional payment methods. The work also addresses the security risks associated with cryptocurrencies and the challenges posed by their regulation. Additionally, it analyses current trends and examines potential scenarios for the future of cryptocurrencies. In the analysis of cryptocurrency volatility, key financial risk indicators such as standard deviation, variance, correlation, and beta coefficient were used. The paper compares the volatility of selected cryptocurrencies, including Bitcoin, Ethereum, Binance Coin, XRP, and Litecoin, against the S&P 500 index. The results indicate that while cryptocurrencies offer potentially high returns, they also carry significant risks due to their pronounced volatility. This analysis provides a deeper understanding of the risks associated with investing in cryptocurrencies and emphasizes the importance of carefully considering these risks when making investment decisions. Although cryptocurrencies are an innovative and attractive form of asset, their instability compared to traditional financial instruments requires caution and thorough analysis before investing.