What is crypto?

The term crypto is used to refer to a range of different digital or virtual products including crypto-currencies. Cryptocurrency is a type of electronic money or digital currency. It can be used to pay for goods and services but only in limited situations. Cryptocurrencies are created using secured technology. This records who owns what currency and makes payments between users. Some well-known cryptocurrencies include Bitcoin, XRP, Litecoin and Ethereum. Crypto, short for cryptography, is a way to encrypt information. This encryption can be used for many things, including cryptocurrency 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 14 November 2023