In recent weeks, there have been numerous inquiries from Marines who are owners of cryptocurrencies. The Marines received notice that their ‘crypto’ had been delisted. This frequently asked questions document sheds some light on the topic.
Question: What is Cryptocurrency?
Cryptocurrency is digital money. That means there is no physical coin or bill. Currently, there are over 600 types of active cryptocurrencies. The top five are Bitcoin, Ethereum, Ripple , Bitcoin Cash, and EOS. You can transfer cryptocurrency to someone online without a go-between, like a bank. People might use cryptocurrencies for quick payments and to avoid transaction fees. Some might get cryptocurrencies as an investment, hoping the value goes up.
Question: Where does cryptocurrency fall on the risk spectrum?
Before you buy cryptocurrency, know that it does not have the same protections as when you are using U.S. dollars. Check out the below:
Question: What happens when a ‘crypto’ is “delisted”?
When a coin is “delisted” from an exchange it doesn't vanish into the dark corners of the web, it just means that it’s unavailable to trade on that exchange. It will still be held in private wallets as it always has.
Question: So what is a wallet?
A typical cryptocurrency wallet is a place that stores your cryptocurrency and validates your transactions. Your wallet keeps secret information, called a private key, which is used to validate transactions and “sign” them so that your ‘crypto’ can be used to make purchases or exchanged for something else. This prevents someone else from using your ‘crypto’ or the transaction being altered by a third-party.
In accordance with Marine Corps Order (MCO) 1700.37, the Personal Financial Management Program (PFMP) staff cannot offer or be construed as giving investment advice including investments in cryptocurrencies. What PFMP professionals can do is offer bias-free and product neutral information to help the Marine make an informed decision. The action(s) the Marine takes is the Marine’s total responsibility.
Have you ever known a Marine experiencing a great degree of stress related to finances? Let’s try to break the experience down and then examine options from a prevention lenses.
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You learned about the importance of a personal financial plan during the Transition Readiness Seminar; now is the time to put it into practice.