Adam Stalnaker 0:06
Hi, Adam and Joe here with Rockport, Wealth Advisors and veteran investment planning wanted to take a few moments to talk about crypto. Everybody’s talking about crypto looking at crypto. Now today, we’re not going to talk about crypto as an investment, but more as the risks that are involved that, you know, some, some are obvious, and some are just not so obvious for people.
Joe Kovach 0:25
Correct? Yeah, yeah, there’s a there’s no short list of risks when it comes to anything, frankly, but especially when it comes to crypto because it’s relatively new. So, you know, one of the one of the main risks we see that, you know, is a kind of the first one is volatility. These things can move five 10% a day, for seemingly no reason sometimes. So it’s, you know, a lot of people think the stock market’s volatile, and it’ll move 1% a day, this is maybe five, or 10 times
Adam Stalnaker 0:54
eight, nine, 10%. Like these are, these are big moves.
Joe Kovach 0:58
You gotta be prepared for a wild ride. Exactly. Gotta be prepared for a wild ride. Yeah.
Adam Stalnaker 1:02
And then another one is cyber theft and hacks. I think, you know, that’s out there all the time. I mean, I see phishing attempts in my email all the time, but I think it’s even more prevalent with with crypto because, you know, there’s no, people can just take crypto and it, there’s just nothing they can do about it.
Joe Kovach 1:21
So definitely in the UK, wild west infancy stages, right? Absolutely. So
Adam Stalnaker 1:25
they’ve got to really be careful with those phishing attempts or clicking on things that that they may shouldn’t, and they shouldn’t do that anyway. But even more risky with crypto.
Joe Kovach 1:36
Exactly. And then you get to a third risk we like we call decentralization, which you know, it’s it’s, it’s there is no centralized governing body around it yet. Now, maybe there will be someday. But if you have to file a transaction dispute, you may never get anywhere with this thing. So it’s extremely important to deal with a reputable cryptocurrency.
Adam Stalnaker 1:57
Well, it’s what people love about crypto, right? They don’t like they like that a government’s not behind it. And, you know, there’s no, correct. But that’s also, you know, issues, you know, come arise because there is nothing back behind it.
Joe Kovach 2:11
Right, I think it’ll look, I think that landscape will look drastically different in a few years than it does now. But but for now, you’ve got to be really careful of where you’re opening your account where you’re buying your crypto through, make sure you’re reputable dealer, for sure.
Adam Stalnaker 2:23
And then another risk that we see too is peer to peer transactions. You know, when you’re when you’re transacting through some of these other pay sites, like Venmo, and PayPal, and all these things, well, these things are tracked and people see him but if you’re just paying somebody for something and you’re expecting something in return, well, you may not get you may not get anything back, you might not I remember when when eBay was starting and stuff like that, and people were, we didn’t have these good payment processing options. People were stealing from people all the time. Now that you’ve got those options on that side. It’s a lot easier to have those types of transactions but we’re still in that in the crypto world. In a peer to peer there’s there’s no that you can’t get anything back.
Joe Kovach 3:08
Very, very lengthy stages. Exactly. It’s gonna develop over time, but for now, it’s it’s a little bit more risky than it might be in a few years, right.
Adam Stalnaker 3:17
Absolutely. Absolutely. So we’ve got a part two coming up on this. So so look out for that. And we’ll we’ll see in the next video.