The world of crypto is often a misunderstood one. Despite the buzz, there is still actually very little understanding around the topic.
One expert has shared her tips, to help those who are thinking of investing in cryptocurrencies.
Don’t invest in an ICO that does not have a product:
Investing in an ICO that does not have a product is incredibly risky. Our expert supports the US Securities and Exchange Commission’s statements, which say if a company decides to make an initial coin offering, which is designed to raise funds for a cryptocurrency, they should have an actual product first.
Get some guidance on cryptocurrency options:
Our expert said
“It would be very helpful to have a little guidance on all of these cryptocurrencies…Everybody’s heard about Bitcoin. But there’s a lot of different cryptocurrencies out there.”
Because there is little knowledge regarding the many ways in which you can invest in virtual currencies, investors are actually at the mercy of companies who use their own criteria for selecting which digital currency to invest in.
Know the difference between pseudo-anonymous and full anonymous:
It is so important to recognise the difference between the two. Pseudo anonymous currencies like Bitcoin, means that users do not know the name that is attached to the IP address, but law enforcement can find it out if required for legal reasons.
Use resources, like the Blockchain Alliance:
This organisation helps law enforcement and regulatory agencies across the world to understand the blockchain ecosystem. The website provides informational sessions, as well as assistance for investors to help understand the world of digital currencies. Our expert concludes by saying;
“There’s a lot of really cool work going on educating law enforcement on this…The problem is there aren’t even that many people in law enforcement who know about it or have the funding to spend time on it.”