What is crypto?

The term crypto is used to refer to a range of different digital or virtual products including crypto-currencies. 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 (NFTs ).

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?

Last updated on 3 February 2023