Questions NOT to ask a crypto investor
You're at the dinner table, the BBQ is sizzling, or you're small talking with colleagues at work - suddenly, conversation stalls. Heads turn toward you, the resident crypto enthusiast, and before you know it, someone asks the inevitable: "So… how's that crypto looking?" If you've ever convinced anyone to join team crypto, this scenario is all too familiar. Sometimes, the questions asked make for a great debate; but other times, they're simply naive or misinformed.
1. "When will the bull run start?"
This question would make any seasoned crypto investor squirm. Crypto trading can be thrilling, but it's also unpredictable.
While understanding the overall trend the asset cycle follows is important (more here), there's simply no surefire formula for predicting when the next bull run will kick off. Importantly, it's rarely smooth sailing within each market phase, and there might be rallies, reactions and a lot of volatility on (hopefully) the way up.
Recently, even the Federal Reserve's decisions - slashing rate cuts by 50 basis points instead of the expected 25 - have had investors rethinking everything. From global economic shifts to geopolitical events (presidencies, wars, pandemics—take your pick), market confidence can be a wild card. Prices can skyrocket or plummet overnight. The key is: don't invest more than you can afford to lose and always have a strategy - whether that's taking profits at a certain price or building a long-term savings pot. Do your own research, and if you're still unsure, consult a pro.
2. "Isn't crypto for criminals and all just a scam?"
Ah, the age-old stereotype. Sure, in the Wild West (beginning) days of Bitcoin, crypto had its fair share of publicity around shady dealings. But the space has evolved - in leaps and bounds. Crypto today powers everything from secure, decentralised finance (DeFi) platforms to cross-border remittance systems, and even helps emerging economies bypass failing financial systems.
The truth is, blockchain's transparent, immutable public record of transactions (ledger) is often the last place a criminal would want to hide. With growing regulation and strict Know Your Customer (KYC) requirements, using a reputable exchange for your crypto transactions helps to keep your assets - and identity - secure. (TLDR: crypto is for everyone, not just for criminals!)
3. "So, can you buy me a coffee with it?"
Oh boy, this is a goodie! While yes, more and more places do accept crypto (and yes, you can technically buy a coffee with Bitcoin!), that's not the only point. Besides a myriad of everyday uses, it's useful to think of crypto as an investment vehicle and long-term store of value - like gold, but in digital form. While the idea of paying for your daily latte with crypto sounds cool, most investors aren't exactly splashing their BTC or ETH on cappuccinos. It's more about building wealth; not spending it on coffee. (As a side note - it's worth looking into stablecoins as a great 'middle ground' between fiat and crypto. More here.)
4. "Should I put my life savings into crypto?"
This is the ultimate eyebrow-raiser when it comes to crypto queries. No seasoned investor would recommend tipping your entire life savings into any single asset class - especially one that can be as volatile as crypto. As exciting as bull runs can be, crypto is a high-risk, high-reward game and getting sound advice about diversification is a good idea.
5. "Is crypto just a bubble waiting to burst?"
This question reflects classic scepticism. While there have been bubbles (hello, 2017!), crypto has matured and is now backed by serious institutional interest, from hedge funds to tech giants. (Most big tech advancements have seen bubbles on the way to mainstream adoption.) Blockchain technology isn't going anywhere, and whether or not you buy into the hype, the underlying tech is here to stay.
6. Which crypto should I buy?
There's more to crypto than just Bitcoin and each type has its own purpose and value; but it's difficult to tell someone which to buy as this is deeply personal. This is why doing your own research is so important. Exploring different cryptocurrencies helps you understand which ones fit your goals and how they work together in the larger digital economy. This is no different to analysing what shares to invest in. You should ask how long the company/token has been around, what their use case is and investigate their product-market fit, track record and team. (You can learn more about the crypto coins Easy Crypto sells here.)
One final takeaway
Crypto is exciting, fast-paced, and constantly evolving - but it's not about instant wealth or dodging criminals. Next time the conversation goes quiet and you're tempted to ask your crypto-savvy friend something, why not steer clear of these landmines and think about adding something more interesting to the debate on crypto's potential or latest interesting use cases.
Disclaimer: Investing in crypto carries risk. Always do your own research or seek professional advice. Terms and Conditions apply
