Blog Hero

Crypto: What’s the Risk and How to Protect Yourself

Listen Live

Despite the controversy surrounding cryptocurrency, its popularity is on the rise.

A recent study by KPMG found that Canada’s investment sector has actually been warming up to crypto in recent years.

However, the potential for higher returns also comes with the risk of significant losses, not to mention it is an easy target for scammers.

Why is cryptocurrency particularly prone to scams?

A recent article by the Alberta Securities Commission (ASC) cites factors like:

  • Decentralization and lack of regulatory oversight;
  • Price volatility;
  • Rug pulls;
  • And fake Initial Coin Offerings (ICOs)

If some of these terms are unfamiliar to you, you’re not alone! Check out the ASC blog linked at the bottom of this article for more information.

How to protect yourself

Before putting your hard-earned money into any investment, it is important to make sure you understand the ins and outs. What is the potential upside? What are the risks? Does the investment suit your personal risk tolerance? If you are unsure about your risk tolerance, you can take this quiz at CheckFirst.ca and follow up with a conversation with your wealth advisor.

Do your research! Go online to see if the company offering the investment is registered with the Alberta Securities Commission. CheckFirst.ca is also a great resource. Created by the Alberta Securities Commission, this site has information on identifying and avoiding investment fraud so that you can safely choose the right investments for you.

Talk to your wealth advisor. There is a reason you partner with a professional when it comes to your finances. Your advisor should be a source of information and the voice of reason about all things investing, but especially when you’re tempted to get in on ‘the next big thing’

Want to learn more? Read the ASC’s latest blog “Is crypto a good investment? Understanding the risks and rewards of crypto“. 

CIBC Private Wealth consists of services provided by CIBC and certain of its subsidiaries, including CIBC Wood Gundy, a division of CIBC World Markets Inc. 

David Popowich and Faisal Karmali are Investment Advisors with CIBC Wood Gundy in Calgary. The views of David Popowich and Faisal Karmali do not necessarily reflect those of CIBC World Markets Inc.

This information, including any opinion, is based on various sources believed to be reliable, but its accuracy cannot be guaranteed and is subject to change

If you are currently a CIBC Wood Gundy client, please contact your Investment Advisor.

Listen Now

More Than Money

Are Canadians more in debt than ever?

As Seen On

WHY SHOULD YOU COME TO OUR SEMINAR?

Can I afford to retire? Will inflation and volatility ruin my retirement plans? How do I ensure my family is looked after? What happens if I have an unexpected health event? Can I support the lifestyle I want in retirement?

When it comes to preparing for a fulfilling and financially stable retirement, there are so many questions you need answered.

Dave and Faisal’s seminar will give you the practical tools and advice you need to bring your vision for retirement to life. Dave and Faisal cover topics like investment and tax strategies, financial and estate planning, and lifestyle goals to help make sure you’re ready to take the next steps toward retirement.

Sign up for their seminar today!

instagram facebook facebook2 pinterest twitter google-plus google linkedin2 yelp youtube phone location calendar share2 link star-full star star-half chevron-right chevron-left chevron-down chevron-up envelope fax