Would you in­vest in Trump Coin?

Fraser Coast Chronicle - - LIFE FINANCES - TIM McIN­TYRE

WOULD you in­vest in Mar­i­juana Coin? How about Tat­too Coin or In­vis­i­ble Coin?

You can even get be­hind Trump Coin, cre­ated in early 2016 to help the now Pres­i­dent into the White House.

The Bit­coin craze has awak­ened the pub­lic to the bur­geon­ing cryp­tocur­rency space, which now has al­most 1400 types of “coin” listed by Coinmar­ketcap.com.

Many cryp­tocur­ren­cies have ex­pe­ri­enced sig­nif­i­cant growth in re­cent times, but high fees, long trans­ac­tion wait­ing pe­ri­ods, links to the crim­i­nal un­der­world and com­plex­ity of how the val­ues work are some of the emerg­ing neg­a­tives.

An av­er­age Aus­tralian think­ing of in­vest­ing in the space needs the right prepa­ra­tion, ac­cord­ing to Josh Cal­laghan, gen­eral man­ager of wealth at fi­nan­cial com­par­i­son com­pany Canstar.

“Cryp­tocur­ren­cies ex­ist to re­move the mid­dle­man – banks pri­mar­ily – from global fi­nan­cial trans­ac­tions, en­abling large scale per­son-to-per­son ex­changes of value without us­ing a third party,” Mr Cal­laghan said.

“It’s a rev­o­lu­tion­ary idea but for the ev­ery­day Aussie it can be risky. If any­thing hap­pens such as los­ing your ac­count num­ber, pri­vate key, hav­ing your de­tails hacked or funds not turn­ing up in your ac­count, there’s no-one to call for help. In most cases, your money is sim­ply lost for­ever.”

Mr Cal­laghan said three key as­pects needed to be un­der­stood: the coin’s value, the cost of the in­vest­ment and se­cu­rity.

Val­ues were dif­fi­cult to de­ter­mine, but could be linked to the aim of the coin; to ei­ther solve a prob­lem or de­liver a new ser­vice to im­prove users’ lives.

Once you’ve pur­chased, you need to make your coins se­cure.

“En­able two-fac­tor au­then­ti­ca­tion on your ac­count and store your coins in a se­cure wal­let,” Mr Cal­laghan said. Damien Hat­field of Triple A Part­ners re­cently formed EKT Ac­tive Fund, an ac­tively traded cryp­tocur­rency and ICO fund.

“Cryp­tocur­ren­cies is just an­other as­set class,” Mr Hat­field said. “But I think the tech­nol­ogy base is here to stay. It’s new, it’s now es­tab­lished and it is go­ing to grow and grow.” NEXT WEEK: FIVE WAYS A CRYP­TOCUR­RENCY MAY HAVE VALUE

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