Crypto currencies

Crypto currencies

Virtual currencies, or crypo currencies, have become very popular in recent years. Virtual currencies are digital means of payment that are not controlled or issued by a bank. Hundreds of different virtual currencies exist. Well-known examples are Bitcoin and Ethereum. A lot of money can be made from crypto. This has great appeal, social media also plays a big role in this. Many famous people advertise getting rich quick by investing in Crypto. The value of crypto can fluctuate tremendously by the hour, so you can lose a lot of money in a short period of time. Crypto trading can be very exciting due to the speed and rapidly changing price. That excitement can cause you to become addicted to it.

Guaranteed profit?

Recent figures on how much is invested in crypto on average show that people invest an average of 2,654 euros (2023)(source: Crypto Insiders). Crypto is very popular. The more people use crypto, the higher the value. The price seems to rise all the time, but a small event can cause the value to suddenly plummet, causing you to suddenly lose a lot of money.

Because crypto is not issued or controlled by a bank, there is thus no oversight of it. So you have no guarantee whatsoever. The popularity of crypto currency is high, which also attracts people with the wrong intentions. You can be scammed, causing you to lose a lot of money. For example, the exchange rate can be artificially inflated, false promises can be made or even cyber-theft. If you get hacked then you lose all your money.

Tips for Speculating with Crypto

If you do want to speculate in crypto and keep it fun, pay attention to the following:

• Learn about the product, know the risks

•  Do not borrow money to buy currency, never invest more than you can lose

•  Spread your investments, and consider making risky investments only a part of your investments.

•  Chance of success in the past does not guarantee success in the future.

•  Don't let your life suffer, school, work, friends are important too!

•  If you start lying about your expenses or about how much time you spend with them beware: that is often a sign that things are going in the wrong direction!

•  Does speculating with crypto cause you physical complaints? Does it stress you out, make you irritable or panicky? That's a sign that you're getting too involved.