Crypto currencies like the famed and decried Bitcoin are a relatively new concept. With advancements in technology retailers and businesses willing to accept it as a legitimate currency.

How investing in crypto-currency works? video image
Video transcript

Crypto currencies like the famed and decried Bitcoin are a relatively new concept. With advancements in technology retailers and businesses willing to accept it as a legitimate currency. And the introduction of block chain the prospect of trading crypto currencies has become accessible to a wider market.

Blockchain is a historical record of each transaction verified by each computer in the network. Where investing in crypto differs however is that it's a less traditional type of investment.

Imagine if there was a new country established with its own currency: the value of that currency depends on how the country is performing and more importantly how other countries perceive its value.

Investing in crypto currencies can be very risky. Firstly to buy and store crypto currency is quite technically demanding and is very easy for things to go wrong. There have been many stories of people forgetting their passwords and losing access to their accounts containing once valuable amounts of crypto.

You also face the risk of losing your money entirely if you invest in a less well-known crypto platform that then collapses. The lack of regulation from a central authority means that seeking compensation and making complaints is also very difficult.

Crypto currencies are facing increasing regulatory threats and with prices that fluctuate much more aggressively than traditional investments they do come with a high level of risk for investors.

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