SAINT LOUIS, MO (KMOX) - The wealthy like to play with cryptocurrency, but is it something for the average investor? "It's extremely risky," says Magnus Carter, author of the book Making More Money for You! Decrypting Cryptocurrency.
"There are over 10,000 types of cryptocurrencies out there." Carter has been following the cyptocurrency markets since the 1990's. He points out, for the few crypto platforms that have succeeded, thousands have failed. Carter explains why investing in crypto is such a risk, "there's no federal guidelines. There are actually no repercussions if you do lose your money and you are scammed, you can't get your money back." Plus there's no central bank backing it up.
He says it's essential to do your homework and only invest what you can live without. "Check when these companies went into existence. If it's in the last month or two, it's possible, but be very skeptical because it might not be there tomorrow."
Even leaders of successful crypto platforms are concerned about overall stability of cryptocurrencies in the future. The head of Etherium recently told Time magazine he's worried about overeager investors and exploitation in the form of high transacton fees.
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