Or Litecoin?

Or Dash?

What about platforms like Ripple or Zcash?

A New Frontier

Cryptocurrency investing has risen from an underground, financial trading outpost for techies to a full-blown investing phenomenon. Cryptocurrency has emerged as an innovative and major trading platform. However, the rapid rise and deeply technological nature of this type of investing has left it a largely foreign concept to many traditional investors. In fact, cryptocurrency is very much a new frontier, even for those familiar with it. While cryptocurrency investing can be an exciting new platform, the industry around cryptocurrency is still establishing itself. As a recent Reuters article reports, cryptocurrency investing is still very much a Wild West for investors. Sufficient, standardized regulation really has yet to take hold, and with the diverse array of available cryptocurrencies, it has proven difficult to police. If you’re considering cryptocurrency investing, you should not let potential risks deter you. After all, any investment type comes with risks. What’s important to remember is to practice smart investing. There is a learning curve, but if you practice smart investing and take proper measures to protect your investments, you can safely mitigate those risks.

Tips for Safe Cryptocurrency Investing

• Familiarize yourself with the cryptocurrency marketplace
  • Understand basics of investing and trading
• Research available cryptocurrencies
  • Cryptocurrency varies widely in terms of how it is designed, distributed and exchanged
  • Available offerings differ in terms of traceability, anonymity and security
• Research and verify trading and exchange platforms
  • Don’t lose your investment to fraudulent traders or fake exchange platforms
  • Make sure you’re trading on a secure and verified platform

Investor Resources

You can read the full Reuters special report on cryptocurrency exchange risks here. If you’ve been approached with an investment opportunity for an Initial Coin Offering (ICO), check out our past post on what to know before investing in an ICO.

One down, one to go

This settles at least one of the the two mortgage-baked securities lawsuits against RBS in U.S. courts. Another lawsuit remains pending with the U.S. Department of Justice (DOJ). According to the Reuters article, experts are estimating at least $10 billion will go towards the settlement. It is slated to be the largest fine ever paid by the bank in U.S. courts.

Other mortgage-backed securities lawsuits?

This settlement is also the last of the largest of the 17 mortgage-backed securities lawsuits the FHFA has brought against various banks since 2011, when it was named as conservator of mortgage lending giants, Fannie Mae and Freddie Mac. Since then, the FHFA has managed to recover nearly $18 billion in settlements from various big banks, according to a Reuters report. You probably recognize most of the 17 names on the FHFA’s list. They represent some of the U.S.’ largest investment banks. Here’s a quick recap of which banks the FHFA brought mortgage-backed securities lawsuits. The figures represent the settlements reached so far:

• Ally Financial
• Bank of America Corp. – $9.3 billion
• Barclays Bank – $280 million
• Citigroup, Inc.
• Suisse Holdings (USA)
• Credit Suisse Holdings (USA) – $885 million
• Deutsche Bank AG – $1.9 billion
• First Horizon National Corporation – $110 million
• General Electric Company
• Goldman Sachs & Co.
• HSBC North America Holdings, Inc.
• JPMorgan Chase & Co.
• Merril Lynch & Co./First Franklin Financial
• Morgan Stanley – $1.25 billion
• Nomura Holding America, Inc.
• Royal Bank of Scotland – $5.5 billion
• Société Générale – $122 million

Resources

You can learn more about the FHFA’s ongoing mortgage-backed securities lawsuits on their website. To learn more about how to protect your investments against securities fraud or to recover investment losses, contact our team of investment-loss recovery attorneys. Check out our blog to stay up-to-date on business and investment news along with legislative updates.

Online Trading Myths

• Online trades don’t go through brokerage firms
  • This is a pretty common misconception. Just because you don’t deal with a broker-dealer directly when making investments using online trading platforms, does not mean that you are not trading through a firm. As an individual investor, you do not have direct access to the securities market. All online trades are still facilitated through a brokerage firm.
• Online trade platforms do not feature live support
  • No matter what trading platform you use, you are always entitled to live support and advice. Most online trade centers feature a toll-free number or other point-of-contact if you’ve made an incorrect trade or need other investment information.
• Online trade transactions occur immediately
  • While online platforms facilitate turnarounds on trades it does not mean that transactions take immediate effect. Investments may still have a price or time limit attached to them, or you may be trading in high volumes, which can result in delayed transaction times. Other things, like your internet connection or browser speed may affect transaction times.
• Online trading is safer than in-person trading
  • You may think that broker-dealers are just out to take your money. This leads to the misconception that trading online is safe, because it cuts out the broker-dealer role. However, you can be your own biggest investment risk. Investors need to take careful consideration of their investment goals and trading limits before setting up an online account.

Investor Resources

You can find out more about online trading myths and other common misconceptions about securities trading on FINRA’s website. Contact us if you have more questions about online investing or protecting your investments.