How to buy crypto safely?
Say you are interested in making an investment in a high-risk crypto currency. How do you know what you're investing in and how can you create a strategy?
- Research: a crypto equivalent to an index fund does not yet exist. Individuals must look into individual coins.
- Understand structural risks: If your stock brokerage goes bankrupt, the Securities Investor Protection Corporation (SIPC) protects your investments. If your bank goes bankrupt, your account funds are insured by FDIC. When you invest and hold crypto at your crypto exchange or crypto broker, your funds are not protected.
- Buy crypto from a reputable exchange: identify whether the exchange or broker has been hacked in the past; are they insured against fraud and theft? Can you sign up from your state?
- Decide how you will hold your crypto: Do you want full responsibility for securing your crypto? Or do you prefer to out-source this responsibility to a crypto exchange or crypto broker? Each option has its own tradeoffs.
- Decide your investment strategy: Consider your own goals and risk tolerance. Your personal introspection and analysis will determine how you respond to price changes - up or down.
At UNest, we believe in providing investors access to the wealth-building opportunities that were once only afforded to people with financial advisors. Access does not come without additional responsibililty. It is important each UNest Plus member does their own research before buying cryptocurrency.
This material is for informational purposes only and should not be construed as financial, legal, or tax advice. You should consult your own financial, legal, and tax advisors before engaging in any transaction. Information, including hypothetical projections of finances, may not take into account taxes, commissions, or other factors which may significantly affect potential outcomes. This material should not be considered an offer or recommendation to buy or sell a security. While information and sources are believed to be accurate, UNest does not guarantee the accuracy or completeness of any information or source provided herein and is under no obligation to update this information.
Don't just take our word for it
Hear what trusted money experts say about why UTMA and UGMA accounts can be a smart way to invest for a child’s future.
There are some tax advantages to using UGMA and UTMA accounts… Since they’re in your child’s name, the accounts will be taxed according to their tax bracket… There are no contribution limits on UGMA and UTMA accounts.
Dave Ramsey
Personal Finance Expert
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Investing for your kid’s future
Dave Ramsey
Personal Finance Expert
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...you could consider opening an account where you can dive deeper with the kids by your side. The easiest way to do so is to open a custodial account, known as an UGMA ... or UTMA ... account.
Jill Schlesinger
Emmy winning Business Analyst
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Straightforward “starter” investing account for kids
JILL SCHLESINGER
Emmy winning Business Analyst
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You can give children money that can accumulate somewhat tax-free over time... I love them (UTMAs) because they were like, trusts that you didn't need lawyers to create.... I think it's one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting, but that's how you take care of your family.
Jim Cramer
CNBC Host
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Give children money that can accumulate over time
Jim Cramer
CNBC Host
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