It's happened to us more than once: a client, an acquaintance, even a relative at dinner, asks us "So what do you think about crypto?" Our answer is always the same: if you don't understand how something works, don't put your money into it. We know it's not the answer people want to hear. But it's the honest one, and it's the one we want to explain here.
Not (just) a fad: the technology behind crypto
Let's start with a fact: cryptocurrencies aren't a scam in themselves. Behind them is real technology — blockchain — with concrete and interesting applications. The ability to carry out transactions without intermediaries, quickly and potentially more cheaply, is an innovation that deserves attention. It's no coincidence that in 2025 the crypto market's total capitalisation surpassed $4 trillion, and major financial institutions have started allocating resources to Bitcoin, viewing it as a possible hedge against inflation.
Then there's the question of diversification: cryptocurrencies often move independently of traditional stocks and bonds. For a well-structured portfolio, a small allocation — analysts talk about 2-5% of the total — could improve the overall risk-return profile. Some investors, especially in countries with high inflation or capital controls, see Bitcoin as a genuine tool for protecting their purchasing power.
But here's the point: all of this holds true for those who know what they're doing. For those who study it, understand the technology, and know the risks. Not for those who buy because "a friend said so", or because they saw a video on TikTok.
Which risks don't the "gurus" tell you about?
The first problem is called volatility. Bitcoin hit its all-time high of around $126,000 in October 2025. By March 2026, it had fallen by nearly 47%. Imagine investing a lifetime's savings and watching almost half of it evaporate in a matter of months: this isn't theory, it's what has happened to thousands of people.
Then there's security — or rather, the lack of it. In 2025, total losses from theft, fraud and cyberattacks in the crypto world exceeded $4 billion. The attack on the Bybit platform alone caused $1.5 billion in damages. And the victims aren't only the big platforms: increasingly, small investors are falling into phishing traps, fake digital wallets, and AI-powered social media scams.
Finally, there's the emotional factor: when the market crashes, many investors try to "recover" with even riskier strategies, chasing very short-term speculative trades. It's the classic spiral that turns an investment into a bet — and investing should never be a bet.
Our golden rule
Never invest in something you couldn't explain in plain words to someone who knows nothing about it.
We're not "against" crypto on principle: we're against the superficial approach. When someone asks us for an opinion, the first question we ask is: "Do you know how blockchain works? Do you know what happens to your money if the exchange shuts down? Do you know what a private key is?" In the vast majority of cases, the answer is an embarrassed silence.
The problem isn't the instrument. The problem is the lack of awareness. Cryptocurrencies emerged as complex tools, in an ecosystem that's still lightly regulated — even though in Europe the MiCA regulation is starting to bring some order — and with technical risks that traditional markets simply don't have. If you buy a share, there's a regulated exchange, a supervisory authority, an authorised intermediary. With crypto, often there's just a digital wallet and the hope that everything goes well.
There's no need to be alarmist. There's a need to be honest. Blockchain technology will play an important role in the future of finance. But between recognising a technology's potential and putting your savings into it without understanding it, there's a gulf — and that gulf is called uncalculated risk.
Glossary
- Blockchain: a shared, immutable digital ledger that records all transactions transparently, without needing a central authority. It's the technology Bitcoin and all other cryptocurrencies are built on.
- Volatility: how much an asset's price swings over time. A highly volatile investment can rise 20% in a day and fall 30% the next; cryptocurrencies are among the most volatile financial instruments there are.
- Exchange: an online platform where you can buy, sell and trade cryptocurrencies — a bit like a digital "stock exchange". Well-known examples are Coinbase and Binance. Be careful, though: unlike traditional exchanges, not all crypto exchanges offer the same security and regulatory guarantees.
Cryptocurrencies are a fascinating instrument, but not suited to everyone — and especially not to those who don't have the time or the willingness to actually study them. Our rule stays the same: if you don't understand how it works, don't put your money into it. That's not excessive caution. It's common sense.
