THE RISKS AND BENEFITS
OF CRYPTO
SHOULD I INVEST IN CRYPTO?
There are both risks and benefits associated with cryptocurrencies. It’s crucial to educate yourself before deciding.
VOLATILITY
The price of crypto can go up and down quickly in a short amount of time, and there are many factors that contribute to the price fluctuation.
REGULATORY UNCERTAINTIES
Government regulations largely affect new markets, and since crypto is still new, it may take time for policymakers to establish and evolve clear guidelines.
SECURITY & SCAMS
Not all cryptocurrencies or trading platforms are created equal. Some platforms are more secure than others, and some newer coins could be a higher scam risk (AKA rug pulls) than those more established.
DID YOU KNOW?
Over 20,500 cryptocurrencies exist as of August 2022, and roughly half of them were created since January 2022.1
TECHNICAL
Crypto can be stored privately in a non-custodial wallet on a personal device, like an app on your phone or laptop, or using a custodian, like Fidelity.
When storing in a wallet, if you lose your private key, your hard drive crashes, or a virus corrupts your wallet, you may lose your funds.
ENVIRONMENTAL
Some cryptocurrencies use mining to validate transactions which may have environmental implications due to the energy intensive process.
But some miners use renewable energy that otherwise would have been wasted.
DID YOU KNOW?
Bitcoin mining consumes an estimated 92.17TWh/ year2, and nearly 60% of the electricity used to power Bitcoin mining machines comes from sustainable sources.3
INDEPENDENCE
Cryptocurrencies were designed to operate without the control of a single government or central bank (AKA decentralization).
ACCESSIBILITY
Crypto can be easily accessible to everyone—only an internet connection is required.
LOWER FEES & FASTER TIME
Crypto transactions tend to have lower fees and faster transfer times than traditional bank transactions.
DID YOU KNOW?
Smart contracts, like those built on Ethereum, will execute automatically when outlined conditions are met.
TRANSPARENCY
Cryptocurrencies operate on blockchain technology that is fully public and immutable, meaning it cannot be changed or altered.
MAINSTREAM SUPPORT
As cryptocurrencies grow in popularity, mainstream financial institutions and businesses have begun to show their trust and support by offering and accepting cryptocurrencies.
HIGH RETURN POTENTIAL
Although cryptocurrencies can be highly volatile, they have also yielded high returns in the past.
In March 2017, 1 BTC was worth $975, then $20,089 in December 2017, reaching its all-time-high of $69,045 in November 2021, and currently sits at $18,848 as of September 7, 2022.4
Past performance is no guarantee of future results.
THE BOTTOM LINE
Not all coins are created equal. You have the potential to earn a lot of money—but also lose it. Educate yourself before investing.
And think of crypto like the internet. When the internet first started, we never imagined it would be what it is today, so the future of cryptocurrencies could hold promising.
The risks and benefits of crypto