NORTH Wales residents are being advised on the dangers surrounding cryptocurrency.

A cryptocurrency is a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.

Many cryptocurrencies are de-centralised networks based on blockchain technology—a distributed ledger enforced by a disparate network of computers.

Bitcoin continues to lead the pack of cryptocurrencies in terms of market capitalization, user base, and popularity.

And whilst it may seem like a great idea to invest in it on the surface, North Wales Police has issued some guidance on why members of the public should be cautious of it.

They have issued the following steps on how to approach cryptocurrency and how to spot if it may be too good to be true:

  • Be cautious of approaches presenting you with exclusive investment opportunities. It could be a scam if you’re being pressurised to act quickly.
  • Don’t rely on personal testimonies or celebrity endorsements, they could be fake.
  • Most cryptocurrencies aren’t regulated by the FCA which means they’re not protected by the UK’s Financial Services Compensation Scheme. It’s important that you do your research and proceed with extreme caution before making any investments.
  • If it sounds too good to be true, it probably is.