New York attorney general Tish James is warning New Yorkers of the risks of investing in cryptocurrencies. The market reached record lows this May, and investors lost hundreds of billions of dollars.
She said cryptocurrencies are subject to extreme and unpredictable price swings that make them among the highest risks on the market. James said there are other risks, including difficulty cashing out investments, higher transaction costs, hidden trading costs, and limited oversight. There are no federally regulated exchanges like the New York Stock Exchange or the Nasdaq for virtual currencies.