Should you invest in crypto?

Fed up of all the scam crypto advisors? Here’s what a legit financial coach has to say.

You haven’t clicked on yet another crypto scam, we promise you that. Bitcoin and the rest of the crypto assets are on the rise, and when this happens it immediately reminds me of a chance encounter in 2017, waiting for a bus, when a stranger and I struck up a conversation about Bitcoin.

It was a sign of the times; cryptocurrency had become more than a niche interest—it was a global talking point. Yet, the widespread buzz around it served as a prelude to caution for me. Mere weeks after that conversation, Bitcoin’s price took a sharp dive, a stark reminder of the market’s inherent unpredictability.

Fast forward to 2021, history seemed to repeat itself. Cryptocurrencies like Bitcoin and DOGE were on an unprecedented rise, capturing the attention of not just the seasoned investors or tech aficionados but the general public as well.

It was during this time I noticed a worrying trend: people, many of whom had never invested a penny, were now pouring their savings into cryptocurrencies, lured by the promise of swift, substantial returns. This realisation was alarming. The thought of individuals risking their financial security on investments they barely understood was a red flag that couldn’t be ignored.

As a certified money coach, standing on the sidelines wasn’t an option. The frequent stories of loss—of people who had invested everything into the crypto craze only to lose it all—were heartbreaking. This issue, for me, transcends the debate on the potential of Bitcoin or any other cryptocurrency. It’s about advocating for greater financial literacy and responsible investing.

The crypto space is full of opportunities, but it’s equally riddled with risks, especially for those who venture in unprepared. The call for education in this domain is loud and clear. Cryptocurrencies, for all their allure, are complex and volatile. It’s imperative that institutions, alongside financial educators and professionals, step up to demystify this space, providing the necessary knowledge and tools for informed decision-making.

My message to my followers and the broader community is straightforward: approach the crypto market with a blend of curiosity and caution. It’s crucial to understand the risks involved, diversify your investments, and resist the urge to follow the herd. The appeal of cryptocurrencies is undeniable, but let financial literacy be the bedrock of your investment strategy. As we navigate this digital age, let’s prioritise wisdom and education in our financial decisions.

Follow Luca Caruana’s weekly column here, and his LinkedIn account or his Instagram for more budgeting hacks. For other money-related columns, check out Luca’s thoughts about how to make the one-income household work and his advice to couples who argue about money.

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