Crypto Risks for Beginners: What to Know Before You Start

Disclaimer: This article is for educational purposes only and is not financial advice. bunq doesn’t give trading advice. Manage crypto at your own risk. Always do your own research or speak to a qualified financial advisor before making investment decisions. Cryptocurrency investments come with risks, including the potential loss of the money you invest. Prices can fluctuate significantly. bunq Crypto is managed through our partner Kraken.

Crypto can be exciting, especially when you’re just getting started. It gives you a new way to explore digital money, follow the market and invest in coins like Bitcoin and Ethereum.

You can buy, sell or swap crypto directly in your bunq app. No extra platforms. No confusing setup. Just a beginner-friendly way to explore crypto, powered by Kraken.

Still, crypto always comes with risk. Prices can go up and down, returns are never guaranteed and scams do exist. The good news? With the right tools and a few simple habits, you can start with more confidence.

1. Prices can change quickly

Crypto prices can move a lot in a short time. A coin might go up in value, but it can also drop quickly.

That’s why it’s smart to start small. With bunq, you can start with as little as €1, so you can explore on your own terms without taking on more risk than you’re comfortable with.

A good rule: only use money you can afford to lose. Your rent, bills, savings and everyday spending should always come first.

2. It’s easy to get carried away

When prices move fast, it can be tempting to act fast too. You might feel like you need to buy before a coin goes up, or sell as soon as it drops.

Taking a slower approach can help. With Price Alerts, you can get instant updates for your favorite coins, so you can follow price changes without constantly checking the market.

You can also use bunq’s Auto Round Up feature to turn your spare change into crypto when you spend. This lets you build your crypto portfolio gradually, instead of making one big move all at once.

3. Scams are a real risk

Scammers often target people who are new to crypto. They may promise guaranteed profits, free crypto or “exclusive” investment opportunities.

Be careful with anyone who asks you to act quickly, share personal information or send money. Real investing should never make you feel pressured.

bunq also helps protect your money with Safety Shield. If a payment looks unusual, bunq can pause it for 24 hours, giving you time to cancel if needed.

Still, your own habits matter too. Never share your password, security codes or recovery phrase with anyone.

4. Returns are never guaranteed

Crypto can grow in value, but it can also lose value. No coin is guaranteed to go up, and past performance does not mean future results.

That is also true for staking. With bunq, you can enable Crypto Staking and earn up to 8.25% yearly, paid weekly. But staking rewards are variable, depend on the coins you hold and may change over time. 

So before you buy, sell or stake, take time to understand what you’re choosing. Crypto should fit your goals, your budget and your comfort level.

5. Security matters

Crypto security starts with access. With bunq, you can access crypto from the same banking app you already use, with biometric security like Face ID and fingerprint protection.

Trading and custody services are provided by Kraken, while bunq gives you secure access through your banking app.

To stay safer, keep your login details private, use strong passwords and turn on extra security where available.

6. Mistakes can be hard to undo

Crypto transactions can be difficult or impossible to reverse. If you send crypto to the wrong address, choose the wrong network or trust the wrong person, you may not be able to get your money back.

Before confirming anything, take a moment to check the details. Make sure you understand what you’re buying, selling or sending.

You can buy and sell directly in your bunq app, which helps reduce the hassle of switching between platforms or using unfamiliar tools.

Start with more confidence

Crypto does not have to feel complicated.u can explore it in a way that feels simple, familiar and easy to manage.

Start with as little as €1. Buy, sell or swap directly in your bunq app. Set price alerts, use Auto Round Up and access crypto with the security features you already use for banking.

Crypto still comes with risk, but understanding those risks is the best way to start. Take your time, stay informed and choose what works for you.