FINRA Warns Investors; Avoid FOMO in New Crypto Guidelines

The Financial Industry Regulatory Authority (FINRA) has published a comprehensive guide aimed at investors exploring the world of crypto assets. This guide emphasizes the risks associated with FOMO (Fear of Missing Out) and provides crucial advice on crypto investing.

New Crypto Guidelines Highlight Key Challenges for Crypto Investors

FINRA’s new guidelines offer an in-depth overview of various types of crypto assets, including native tokens like Bitcoin and Ether, non-fungible tokens (NFTs), and stablecoins.

The guide highlights their distinct characteristics and potential risks. “The section provides an in-depth overview of the various types of crypto assets, how they can be bought and sold, and the potential risks associated with them,” commented Fox Business journalist Eleanor Terrett.

Avoiding FOMO-Driven Decisions

One of the key messages from FINRA is to avoid making investment decisions based on FOMO. The regulator underscores the importance of conducting thorough research before investing and warns against decisions driven by speculative trends. “Avoid investing based on FOMO — the fear of missing out,” FINRA advises.

Conducting Thorough Research

FINRA encourages investors to utilize resources like BrokerCheck to verify the registration and credibility of broker-dealers involved in crypto transactions.

The guide also discusses the challenges associated with unregistered offerings, decentralized finance (DeFi) protocols, and trading on platforms that lack regulatory oversight, reporters Bitcoin.news.

Staying Vigilant Against Scams and Fraud

The regulator emphasizes vigilance against scams, fraud, and cybersecurity risks that continue to pervade the crypto landscape. “The section links to other crypto-related resources on its own website as well as other regulators like the SEC, CFTC, and FTC,” Terrett added.

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