Key Concepts
Build on the investing basics and become a more knowledgeable investor. Cover key topics like diversification and investment risk, investment fees and charges, debt management, and more to help guide your decision-making.
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Build on the investing basics and become a more knowledgeable investor. Cover key topics like diversification and investment risk, investment fees and charges, debt management, and more to help guide your decision-making.
[…] efforts to encourage Canadians to seek out reliable, unbiased information and make informed decisions when investing. Providing investors with tools and resources to research new investments and avoid investment fraud are key topics covered in the CSA’s Investor Education in Canada 2021 report, which was published today in support of Investor Education Month. “As regulators, we are committed to investor protection and […]
Home > Search results for ‘ KeyConcepts‘ What have you got to lose? Maybe everything. Protect yourself and others from investment fraud by looking out for these five investment fraud warning signs. Learn to recognize and reject investment fraud by watching the videos below. 1 High Return | No Risk | Guaranteed Fraudsters aim […]
Home > Search results for ‘ KeyConcepts‘ Crypto assets are a type of digital asset. They use cryptography, peer-to-peer networking, and a public ledger to create new crypto offerings, and verify and secure transactions without a middleman or bank. Crypto assets often have one or more of the following properties: A medium of exchange […]
Home > Search results for ‘ KeyConcepts‘ Investor education, and research about Canadians’ knowledge and attitudes, are essential to effective investor protection. Through research, the BC Securities Commission (BCSC), and the Canadian Securities Administrators (CSA) are trying to understand Canadians’ investment knowledge, understanding of financial concepts like savings and budgeting, and experience with fraud […]
[…] Started with Investing” is a free video-based resource designed to help you learn about the fundamentals of investing, and to help you become a more engaged and better-informed investor. The videos are packaged into two components – the first set covers the basics, and the second set takes a deeper look at key investing concepts.
[…] on diversifying your portfolio, conducting your own research, and working effectively with a registered investment advisor. Ways to Manage Your Money Working with a Registered Investment Advisor Key Concepts How to Choose an Investment Advisor More Resources Investor Guide Learn More Investor Personality Quiz Take the Quiz Investment Fee Quiz Take the Quiz Test Your […]
There are a number of key questions to ask when interviewing an investment advisor.
Many modern-day scams have the hallmarks of classic frauds, but with a new twist. Check out this list of common and more recent investment scams to learn the key warning signs and understand how fraudsters work.
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Cryptocurrencies and blockchain are the same thing.
Correct Answer: False
Blockchain is a type of digital ledger. A digital ledger records transaction information and then duplicates and distributes the information across the entire network of computer systems on that ledger. A cryptocurrency, on the other hand, is a digital asset that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.
Regulators and law enforcement can’t trace cryptocurrency transactions.
Correct Answer: False
Cryptocurrency transactions can be traced. Though cryptocurrencies can be created, moved, and stored outside the purview of governments, regulators, and financial institutions, each transaction is recorded in a permanent fixed digital ledger. The ledger allows anyone who is plugged in to view the transaction history.
Cryptocurrencies are low-risk investments if you buy and hold.
Correct Answer: False
Many factors may make cryptocurrencies and crypto assets risky investments (e.g., cyberattacks and hacking, their speculative nature, liquidity, security, and volatility). Additionally, many crypto assets and online crypto trading platforms aren’t regulated in Canada. Securities regulators are working with operators of platforms to ensure they comply with applicable securities laws.
I can trade crypto assets through a registered dealer in Canada.
Correct Answer: True
You can trade crypto assets in Canada using registered cryptocurrency platforms. Cryptocurrency trading is legal in Canada, and you should note that profits are taxable as capital gains, or as income if you are classified as a day trader. You can check a platform’s registration by visiting the Canadian Securities Administrators’ website or by contacting a Canadian securities regulator to inquire.
Non-fungible Tokens (NFTs) are a crypto asset that people can collect and trade.
Correct Answer: True
An NFT is a digital asset that often represents real-world objects like art, music, and videos. NFTs are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptocurrencies. “Non-fungible” means that it’s unique and can’t be replaced with something else.
There is no difference between cryptocurrencies and crypto assets, these terms are interchangeable.
Correct Answer: False
The term “crypto assets” is generally used to reference a broad range of digital assets with a variety of properties and/or uses. The term “cryptocurrencies" refers to a specific type of crypto asset, which is generally designed to be used as a medium of exchange, similar to the way we use fiat currencies (a.k.a. government-issued money) to purchase goods and services.
Not all crypto assets are securities.
Correct Answer: True
Not all crypto assets are securities or are subject to securities laws. That said, the regulatory treatment of a particular crypto asset will depend on whether it is a security or derivative. Despite the fact that a crypto asset may not be classified as a security or derivative, the way they are bought, sold and/or traded can be subject to securities laws.
Bitcoin will retain its value and rise in price over time because there’s a limited supply.
Correct Answer: False
You could lose some or all of the money you used to purchase any crypto asset or cryptocurrency, including Bitcoin. Like many investments or financial assets, there is no guarantee that crypto assets or cryptocurrencies will retain their value or rise in price.
Cryptocurrencies can be used for payments.
Correct Answer: True
Some cryptocurrencies can be used for payments; however, it can be difficult, expensive, and/or slow. Their price volatility may also be a factor in an individual or business accepting cryptocurrency as a form of payment.
Crypto asset scams are among the most popular types of online investment scams.
Correct Answer: True
As the popularity and price of cryptocurrencies rise, so do the scams associated with these digital assets. The volatile, online, and often unregulated nature of crypto assets makes it easy for people to fall victim to fraud in a number of ways. For example, fraudsters use the anonymity of the internet to attempt to avoid detection by regulators or law enforcement.
Nice work. You have a good understanding of crypto assets! Crypto assets are a constantly evolving type of investment, so there is always more to know. Visit InvestRight.org to learn more about crypto assets, investment fraud, and other important investor education information with these resources:
Good job. You understand the basics of crypto assets! Because crypto assets are an ever-changing type of investment, there is always more to know. Check out InvestRight’s crypto asset resources to learn more about these digital investments:
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