Despite temptations such as Litecoin's reduced
transaction fees, Investors should be cautious about transactions involving cryptocurrency, state Attorney General Christopher Porrino warns.
“Cryptocurrencies may be the new rage when it comes to investments, but there are significant risks associated with transactions involving these predominantly unregulated currencies,” Porrino said. “Investors should fully understand the types of currency and transactions being pitched to them before agreeing to invest.” As we know the risks associated with the whole concept of cryptocurrency, it would be in anyone's best interest to check out sites like
cryptoexchangespy.com, just so they can stay up to date with everything surrounding this industry and just know what they'll be getting themselves into before committing to anything.
Cryptocurrencies like Bitcoin, Ethereum and Litecoin, are a medium of exchange created and stored electronically in the blockchain, a distributed public database that keeps a permanent record of digital transactions. These things are becoming more and more popular though, since it is so easy to now
buy bitcoin.
The North American Securities Administrators Association, or NASAA, offers a short animated video to help investors understand the risks associated with initial coin offerings and cryptocurrencies. This is why it is important to keep on an eye on investment news or do research on any investment before you decide to go through with it. If you are interested in investing in cryptocurrencies you might want to
find out all about cryptocurrency and blockchain at btcnn.com as it is a good idea to be knowledgeable about your investments before you make them. After doing research on bitcoins and other cryptocurrencies you might also be interested in checking out something like this
bitcoin to ethereum converter that might be able to help you with your investments. Keeping up on any investments made surrounding cryptocurrency could help with
cryptocurrency taxes that might be imposed on later investments.
https://vimeo.com/239995680
Unlike traditional currency, these alternatives have no physical form and typically are not backed by tangible assets. They are not insured or controlled by a central bank or other governmental authority, cannot always be exchanged for other commodities, and are subject to little or no regulation.
A survey of state and provincial securities regulators by the North American Securities Administrators Association, or NASAA, shows 94 percent believe there is a “high risk of fraud” involving cryptocurrencies, Porrino said.
“Because of the high risk of fraud and some projections of huge returns, investors must be on alert and not be tempted to invest in cryptocurrency-related investments without first vigorously vetting any transaction,” said Sharon M. Joyce, acting director of the Division of Consumer Affairs. “Understanding what is being sold is the best armor an investor has against fraud.”
Regulators also were unanimous in their view that more regulation is needed for cryptocurrency to provide greater investor protection.
“Transactions involving cryptocurrency are often complicated and confusing with an unproven track record,” said Bureau of Securities Chief Christopher Gerold. “They are not designed for investors with a low tolerance for risk or volatility. The best advice we can give is for investors to be completely aware of the risks before investing and act accordingly.”
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