What Is Bitcoin and Should I Invest In It?

Investing involves risk, including loss of principal and for some products and strategies, loss of more than your initial investment.

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction. Call Schwab at 1-800-435-4000 for a current copy. [Supporting documentation for any claims or statistical information is available upon request.

Supporting documentation for any claims or statistical information is available upon request.

Past performance is no guarantee of future results.

This material is intended for general informational and educational purposes only. This should not be considered an individualized recommendation or personalized investment advice.  The securities, investment products and investment strategies mentioned may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decisions.

For illustrative purposes only. Individual situations will vary. Not intended to be reflective of results you can expect to achieve.

Diversification, asset allocation, automatic investing, and rebalancing strategies do not ensure a profit and do not protect against losses in declining markets.

Virtual Currency Derivatives trading involves unique and significant risks. Please read NFA Investor Advisory – Futures on Virtual Currencies Including Bitcoin and CFTC Customer Advisory: Understand the Risk of Virtual Currency Trading.

Charles Schwab Futures and Forex LLC is a member of NFA and is subject to NFA's regulatory oversight and examinations. However, you should be aware that NFA does not have regulatory oversight authority over underlying or spot virtual currency products or transactions or virtual currency exchanges, custodians, or markets.

You should carefully consider whether trading in virtual currency derivatives is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Please note that virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Virtual currencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional fiat currencies. Profits and losses related to this volatility are amplified in margined futures contracts.

The technology relating to digital assets, including blockchain, is new and developing and the risks associated with digital assets may not fully emerge until the technology is widely used. In addition, the values of the companies included in the fund may not be a reflection of their connection to digital assets but may be based on other business operations or lines of business which means that such companies' operating results may not be significantly tied to their respective activities related to digital assets.

ETFs can entail risks similar to direct stock ownership, including market, liquidity, tracking errors, sector, or industry risks. Some ETFs e.g. synthetic ETFs and leveraged inverse may involve emerging market, passive investment, tax, currency, commodity, leverage, credit and interest rate risk. Trading prices may not reflect the net asset value of the underlying securities.

All expressions of opinion are subject to change without notice in reaction to shifting market, economic or political conditions. Data contained herein from third party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

Digital currencies [such as bitcoin] are highly volatile and not backed by any central bank or government. Digital currencies lack many of the regulations and consumer protections that legal-tender currencies and regulated securities have. Due to the high level of risk, investors should view digital currencies as a purely speculative instrument.

Charles Schwab Futures and Forex LLC is a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member and a subsidiary of The Charles Schwab Corporation.

Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.