What to know before investing in crypto

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The crypto ecosystem has grown considerably in recent years. Institutions like the IMF are starting to embrace crypto, although they are also advising investors to be cautious.

The crypto ecosystem has grown considerably in recent years. As institutions like the International Monetary Fund begin to embrace cryptocurrencies, they are also calling on investors to be cautious.

A June survey of 1,000 adults in the UK found that 45% of respondents aged 18-29 chose cryptocurrency as their first investment. And a number of those transactions have been done through credit cards, student loans, or other means of borrowing.

For example, 56% of those surveyed who invested in bitcoin or dogecoin financed their investments with debt.

The IMF, in its annual report on global financial stability, said that while more than 16,000 tokens have been listed on various exchanges, today only around 9,000 remain.

As for the other 7,000 or so, some developers have simply walked away. The other tokens are simply not redeemed. And, according to the IMF, some were likely set up for purely speculative purposes or were outright scam.

Watch the video above to find out why the IMF is so concerned about cryptocurrencies and what you need to know before getting involved.

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