What is Cryptocurrency?
In short, cryptocurrency (also known as “crypto”) is a payment form used over the internet without an intermediary such as a bank or government entity. Cryptocurrency is completely digital and doesn’t have any physical form. When you “own” crypto, you essentially own a digital key that can move a digital record from one person to another. Whereas a bank would keep all financial transactions on a ledger, cryptocurrency transactions are recorded on a peer-to-peer ledger using blockchain technology. Crypto can be traded, just like stocks, and like stocks, its value is derived by the amount of interest the market has. As the value of cryptocurrency rises and drops, many buy and sell it to try and make a profit.
Cryptocurrency and KTVAECU
Currently, NCUA does not allow credit unions to sell or hold cryptocurrency. KTVAECU® does not perform sell or hold transactions with any form of cryptocurrency (Bitcoin, Litecoin, Dogecoin, etc.). Beware of any comments, reviews, or posts on Credit Union social media pages or websites about Bitcoin transactions or transactions with any form of cryptocurrency.
When you buy and sell cryptocurrency, safety should be the top priority. These tips can help you stay safe as you explore crypto.
- Consistently check your account activity for fraudulent transactions.
- Use features like Online and Mobile Banking to monitor your account for any suspicious activity.
- Watch out for phishing scams to steal personal information.
- Be cautious of emails asking for personal information.
- Verify all emails come from the correct and valid companies.
- Be aware of fake accounts claiming to be celebrities selling cryptocurrency.
- Use strong passwords.
- When creating passwords, use a combination of capital letters, lowercase letters, numbers, and special characters to protect your personal information.
- Be cautious.
- The value of any cryptocurrency can fluctuate multiple times in a day. Just as you would when trading stocks, be cautious in how much you invest and what cryptocurrency you choose.
- Research, research, and more research!
- Always be sure that any cryptocurrency trading services you are using are reliable. Do your research to find which services are secure and have stringent privacy policies to protect your personal information.