In an effort to warn the public about the risks associated with virtual currencies, USA.gov published a list of Five Things You Should Know About Virtual Currencies.
The article aims to simplify what virtual currencies are all about and why people should think about the risks involved before choosing to invest in it. It defines virtual currencies as a digital form of money that can be used for purchasing goods and services typically online and can also be exchanged for other currencies such as the U.S. dollar.
Risks of Virtual Currencies
The article also warned that these types of currencies have a high potential of attracting fraudulent activity and offer high-risk investment opportunities. Among the risks involved are the high risk of fraud, as scammers target virtual currency investors with promises of high returns, fake opportunities, and other schemes.
Apart from that, the article also mentions that virtual currencies are unregulated. “There are no laws in place to protect investors. The currencies, issuers, and exchanges are not regulated by any government. In addition, the funds are not insured from loss if the exchange shuts down or if the value plummets,” it noted.
In addition, virtual currencies are also known to fluctuate in value. The article