Cryptoassets What you need to know
Investing in cryptoassets is risky: crypstoasset is complex, highly volatile and susceptible to fraud. What do you need to know before you get involved in cryptoassets?
Understanding cryptoassets and their associated risks
What are cryptoassets? How are they bought? How are they stored? Did you know that cryptoassets aren't legal tender in Canada? Before deciding to buy, take the time to do your homework.
The value of cryptoassets can rise or fall by thousands of dollars in a matter of hours. While people who hold cryptoassets can make a profit, they can also lose a lot of money.
Before buying cryptoassets, there are several significant risks to consider, including:
- Volatility risk
- Liquidity risk
- Technological and operational risk
- Potential involvement in criminal activities
Beware of opportunities that sound too good to be true
Dreams fuelled by people claiming to be earning high returns on cryptoasset investments are driving enthusiasm for cryptoassets. That enthusiasm is attracting fraudsters seeking an opportunity to scam investors.
Offers that sound too good to be true should raise red flags. There’s no such thing as high returns without risk. Investing in cryptoassets is prone to many types of fraud, especially on social media. Follow our tips on how to recognize and avoid fraud attempts.
Be vigilant and stay informed
The AMF also provides various resources to help you be on guard against cryptoasset fraud. Check the investor warnings list of websites, individuals and companies carrying on potentially illegal high-risk activities in Québec.
If you have any doubts, call us!
If you have the slightest doubt about the legitimacy of investment platforms or advisers that are actively soliciting you, don’t hesitate to contact our Information Centre to verify whether they are registered.