Lori Schock, Director of the SEC’s Office of Investor Education and Advocacy posted today an article with an informal and clear language addressing the subject of investing in cryptocurrencies. In this article, she exposes the potential risks of putting money into crypto, and also the drawbacks of these new kinds of investment instruments.
The article states that “the most important thing to know is the cryptocurrency-related investment markets are very different than our regulated securities markets. For example, our securities laws provide important protections that you may not be getting when dealing in cryptocurrency-related investments. In many cases, you may not know exactly who you are dealing with, where your money is going or what you are getting in return.”
It also criticizes celebrity endorsement of some crypto-coins and reinforces the idea of doing your own investigation before investing. Common sense is the best ally into this.
To conclude, the article states that investors should tread lightly, diversify their portfolio, and never invest what they can’t afford to lose. You can find the original article here.