Monday, June 13, 2022

Beware these Cryptocurrency Investment Risks

New York State officials are reminding the public of some of the potential risks of investing in cryptocurrencies. According to officials, investors in virtual assets should beware of the following:

• Highly Speculative and Unpredictable Value;
• Difficulty Cashing Out Investments;
• Higher Transaction Costs;
• Unstable “Stablecoins;
• Hidden Trading Costs;
• Possible Conflicts of Interest;
• Limited Oversight.

Even “legitimate” investments in virtual assets are subject to speculative bubbles and security issues, the report notes.

Members of the public who are worried that they have been a victim of investment fraud, can contact the Investor Protection Bureau or seek the advice of a competent attorney of their own choosing.

For more guidance on the possible risks associated with cryptocurrencies click here.