Looking to snaffle up some cryptocurrency? Don’t be caught short, advises Rachel Pearce.
The crypto world has always been a bit of a mystery to me. If I’m honest, I was really tickled that the real name of the self-proclaimed “King of Crypto” – now more or less bankrupt after building a $21 billion crypto currency exchange, and indicted for fraud – is Sam Bankman-Fried. You can’t make this stuff up…
But the world of digital currency – the likes of Bitcoin, Litecoin and Ethereum – is actually a pretty serious business. If you don’t know what you’re doing (and apparently even if you do), you could stand to lose significant sums of money overnight.
If you’re tempted to take a gamble on crypto, the best piece of advice I can give you is to do plenty of research before you hand over any cash. Do you fully understand how it works? Which type is right for you? How will you go about exchanging your crypto currency? If you can’t answer these questions, read, read and read some more.
Next, work out which cryptocurrency wallet is best for you and where you’re going to store it. Just remember that if the device you’re using is lost or stolen, your cash will be gone quicker than you can say “Bankman-Fried”.
Just remember if the device you’re using is lost or stolen, your cash will be gone quicker than you can say “Bankman-Fried”.
It’s also important to note that crypto is still comparatively new, and markets can rise – and crash – more rapidly than other types of investment. While banks and traditional investment brands tend to be heavily regulated, cryptocurrencies are not, so you won’t be able to rely on your bank’s fraud team to fix things if the market takes a wrong term. As with any other sort of financial deal, there are countless crypto scams doing the rounds, and some are very authentic-looking. My top tip is: if it looks too good to be true, it almost certainly is.
Should Christians just steer clear then? Like most things that aren’t specifically discussed in the Bible, I guess it’s a matter of conscience. Ask God how he would have you use the money he’s entrusted you with and question your motives. Are you looking for a get-rich-quick scheme to fuel a shopping addiction? Or are you looking to add to your storehouse so you can be a blessing to others?
Ask God how he would have you use the money he’s entrusted you with and question your motives.
The way you invest will also depend on your personal circumstances. If you’re struggling to feed your kids, it probably isn’t wise to take a gamble on any sort of risky investment – crypto or otherwise. And even if you’ve got a few grand burning a hole in your pocket, it’s always best to take advice from a qualified financial advisor. Ask yourself: could I survive if the money I invest is completely lost?
Finally, if you’re tempted to do a “Bankman-Fried” and risk ending up on the FBI’s most-wanted list, think again… we serve a God of justice, who calls us to act fairly with our money. Crypto may appear to open doors, but if it stops you approaching the throne room of grace with confidence, leave it well alone!