Before investing in any crypto-related offering, consider…
(1) the three “U’s” (untraceable, uninsured, unregulated),
(2) the substantial volatility and liquidity risks, and
(3) the very real potential for fraud.
This NASAA video highlights that, unlike deposits made to a bank account, deposits into a digital wallet for cryptocurrency transactions are uninsured in case of adverse events such as fraud or insolvency. Cryptocurrencies are often traded on unregulated digital platforms lacking consumer protections. Buyer beware!
Photo credit: André McKenzie