Bitcoin is one type of cryptocurrency. Essentially it’s digital money.
“It is not backed by any government entity,” said Danielle Kane, Better Business Bureau marketplace manager for Portland.
Kane advises before buying cryptocurrency you need to understand how it works. There are no guarantees.
“The value and your money are not protected if something goes wrong,” Kane added.
You get a public key you use to trade the currency and a private key that protects your money. If you lose, it’s gone forever. Kane said cryptocurrency investments can easily fail.
“Cryptocurrency investing is seen as high risk. Only invest what you can afford to lose,” Kane said.
While transactions are anonymous the trades are public and it’s one way a scammer can take advantage of your private information if you’re not careful.