Are Crypto Currencies Safe?

are crypto currencies safe

Cryptocurrencies may seem especially risky among assets in terms of investing. There’s always the danger of losing value and hacking or digital theft; investing in any asset class carries risks; but investing in cryptocurrency seems particularly volatile and complicated compared to others. Perhaps that explains why 88% of Americans had heard about cryptocurrency but only three-quarters are confident enough in investing or trading them currently. A survey from Pew Research Center revealed this information: 93% have heard about crypto but only half feel confident enough to invest or trade them today despite 88% having heard about crypto as an investment option compared with investing or trading them currently.

Many of the issues surrounding crypto are caused by its core technology: blockchain. Blockchain acts like a digital ledger that keeps track of transactions and all of the crypto available on the market; its existence is key to how cryptocurrencies work; however, only approximately 25% of people who have heard of cryptocurrencies know about how blockchain operates – this poses an alarming risk.

An insufficient understanding of cryptocurrency’s fundamentals can leave newcomers open to scams. Therefore, it’s crucial that newcomers to crypto do their research before investing – particularly newcomers to crypto investing – especially regarding what cryptocurrency is, how it’s bought and sold, where you can find reliable exchanges and wallets, etc. Naturally investing any form of currency carries risk; so doing research in order to identify any scams beforehand.

Scams in cryptocurrency can come in various forms, but they’re usually easy to identify. For example, any time someone online requests money or cryptocurrency from you in exchange for investment advice, that should raise red flags. Also a project founder offering quick returns could also indicate trouble.

Other common scams include double spend schemes, in which fraudsters attempt to take your cryptocurrency twice by spending it simultaneously on multiple transactions. As cryptocurrency investments are less regulated than most others, safeguards against this kind of fraud may not exist as effectively – therefore it’s crucial that only use trustworthy exchanges and store cryptocurrency safely when not in use.

Even amid safety fears, more Americans are turning to crypto as part of their retirement plans. Still in its infancy stage, relatively few crypto investors say their cryptocurrency investments have had any tangible effect on their personal finances; as a result, many are waiting until events unfold before making decisions regarding whether or not to invest in this fast-emerging field.