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How Safely Are You Trading Cryptocurrencies?

Investors should be aware of the lack of regulation.

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Investing in cryptocurrency comes with many risks. While some risks, like extreme price volatility, have become well-known and well-understood by the general public, others remain obscure and leave retail investors potentially vulnerable. From June 2020 to June 2021, 13% of Americans purchased or traded cryptocurrencies, according to a University of Chicago survey. But what percentage of those investors realized that they may not be getting the best price for their crypto investments? How many had any guidance in developing their cryptocurrency investment strategy? Did investors understand that losing their private keys or typing the wrong wallet address could result in the irrecoverable loss of their cryptocurrency?

Jasmin Sethi does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.