Too Long; Didn't Read
With the recent <a href="https://www.wsj.com/articles/korean-cryptocurrency-exchange-bithumb-loses-more-than-30-million-in-hack-1529465655" target="_blank">Bithumb</a> hack, the question on many investors’ minds is: how safe is my crypto? Although hacking is an issue for all cryptocurrencies, for this note, we decided to use <a href="https://hackernoon.com/tagged/bitcoin" target="_blank">Bitcoin</a> as a proxy for hacking probability. Buying cryptocurrency is becoming less of a wild west experience. Yet, investors still face plenty of instability and risk around every turn. These risks are not only associated with the theoretical argument over whether <a href="https://hackernoon.com/tagged/cryptocurrency" target="_blank">cryptocurrency</a> is here to stay, but also whether some hacker will steal your precious coins. Remember, cryptocurrency exchanges are not insured by the Federal Deposit Insurance Corporation so, unlike equities or bonds, there are no assurances for those investors who lose their money. In addition, the Securities and Exchange Commission has recently called crypto exchanges “<a href="https://www.sec.gov/news/public-statement/enforcement-tm-statement-potentially-unlawful-online-platforms-trading" target="_blank">potentially unlawful online platforms</a>” as none of the exchanges are registered with the securities regulator.