Like many Americans, you probably saw at least a few Super Bowl
advertisements for the cryptocurrency industry last weekend. And if you’ve been
paying attention to the news, there’s no question you’ve heard of someone
creating a cryptocurrency wallet. With all the excitement, you may even be
tempted to invest in, or mine, cryptocurrency yourself.
But before you dive in, you should know that cryptocurrency
is inherently risky.
Unlike banks and brokerages, there's no regulatory body
watching over the crypto market, which reports to the state and federal
government. In addition, crypto prices
are heavily susceptible to sentiment. As sentiment changes, prices shift —
sometimes drastically. In other words, cryptocurrency is driven mainly by the
hope that someone will purchase it for more in the future than the initial
investment.
At the same time, many cryptocurrency exchanges have become
targets for criminals. For example, did you hear about what the Justice
Department has called its "largest financial seizure ever?" A couple
was recently accused of conspiring to launder billions of dollars worth of
bitcoin stolen during a 2016 hack, which targeted a well-known virtual
cryptocurrency exchange.1
Taylor McClish may be reached at (503) 239-3060 or Taylor.McClish@cunamutual.com
Oregonians Financial Planning Website
Securities sold, advisory services offered through CUNA
Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is
under contract with the financial institution to make securities available to
members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial
Institution Guarantee. Not a deposit of any financial institution. CUNA
Brokerage Services, Inc., is a registered broker/dealer in all fifty states of
the United States of America.
This material was prepared by MarketingPro, Inc. for use by Taylor McClish.
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