Like any other software, the Bitcoin client is not perfect. This means that security vulnerabilities may be found, which can be a major risk for a client that is not up-to-date. For example, cryptocurrency exchange mcxNOW lost $85,000 worth of Dogecoin simply because it had failed to update its software for two months. The exchange had missed a major Dogecoin client update, and subsequently allowed non-existent Dogecoins to be traded against real Bitcoins. It is therefore advised to keep the client updated with the latest bug fixes. Similarly, installing updates for other software is also important in order to keep the wallet environment as safe as possible.
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