Digital and crypto-currencies
What is crypto?
Crypto-currency is a type of electronic money or digital currency. It can be used to pay for goods and services but only in limited situations. Crypto-currencies are created using secured technology. This records who owns what currency and makes payments between users. Some well-known crypto-currencies include Bitcoin, Ripple, Litecoin and Ethereum. Crypto, short for cryptography, is a way to encrypt information. This encryption can be used for many things, including crypto-currency and Non-Fungible Tokens ().
What do I need to know before purchasing crypto?
Crypto comes with significant risks:
- You could lose all of the money you invest
- Prices can quickly rise and fall over a short timeframe
- If things go wrong you generally do not have any rights to compensation or protection
- The majority of crypto and related services are unregulated in Ireland or the EU
- As it is unregulated, there are often scams related to fake crypto or gaining access to wallets
- They can be very complex products making it difficult to understand what you are buying
Some questions to ask yourself before buying crypto:
- Can you afford to lose all of the money you invest?
- Does the exchange or website you are buying from have a good reputation?
- Do you understand the features of the crypto you are buying?
What are the risks with crypto?
How can you get crypto-currencies?
How do you use crypto?
What are the fees and charges involved?
Last updated on 27 June 2022