How not to get scammed in cryptocurrencies…

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Cryptocurrency scams are rife, here’s our quick guide to avoiding getting scammed in crypto currency.

Cryptocurrencies are here to stay, but with all new asset classes, it’t a bit like the wild west out there until the regulators catch up.

Cryptocurrencies are more of a commodity are the moment, more like Gold or silver than the GBP or USD. Except of course they have no intrinsic value, other than what people will pay for them.

Here’s three rules to avoid cryptocurrency trading scams.

  1. First thing first, if you don’t understand something, stay away from it.
  2. Never trade or deal with a firm that is not FCA regulated (you can see FCA regulated FCA crypto brokers in our crypto currency broker comparison tables or check the FCA register directly).
  3. Always take independent advice before investing in anything.

If you suspect you have come across a cryptocurrency scam you can report it to the FCA here.

 

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Richard started the Good Broker Guide in 2015 and has been a broker for 20 years most recently at Investors Intelligence and previously a multi-asset derivatives broker at MF Global (Man Financial). Richard started his career working as a private client stockbroker at Walker Crips and Phillip Securities (now King and Shaxson) after interning on the NYMEX oil trading floor in New York and London IPE in 2001 & 2000.