A state regulators group issued cautioned investors Tuesday to be wary about putting their money in bitcoins and other forms of alternative currencies.

“Investors should be aware that investments that incorporate virtual currency present very real risks. Unlike traditional currency, these alternatives typically are not backed by tangible assets, are not issued by a governmental authority and are subject to little or no regulation,” said Andrea Seidt, president of the North American Securities Administrators Association.

In an alert to retail investors, NASAA listed the following bitcoin danger signals.

• Virtual currency is subject to minimal regulation, susceptible to cyber-attacks and there may be no recourse should the virtual currency disappear.

• Virtual currency accounts are not insured by the Federal Deposit Insurance Corporation (FDIC), which insures bank deposits up to $250,000.

• Investments tied to virtual currency may be unsuitable for most investors due to their volatility.

• Investors in virtual currency will be highly reliant upon unregulated companies that may lack appropriate internal controls and may be more susceptible to fraud and theft than regulated financial institutions.

• Investors will have to rely upon the strength of their own computer security systems, as well as security systems provided by third parties, to protect their e-Wallets from theft.

Recently, the value of bitcoins plummeted when one of the largest B exchanges, MtGox, shut down after claiming to be the victim of hackers and losing more than $350 million of virtual currency.