Crypto
Bitcoin, Ethereum and similar digital assets
"High-risk, high-volatility speculation — not a savings vehicle."
Avg. yearly return
Highly variable (-70% to +500% in any given year)
Volatility
Extremely high
Liquidity
High (24/7 trading)
Min. investment
From €1
Cryptocurrencies are digital assets that exist only on a blockchain network. They have no intrinsic value, pay no dividends or interest, and are not backed by any government or physical asset. Their price is determined purely by supply and demand. Crypto can produce extraordinary gains — and extraordinary losses. It is suitable only as a small speculative allocation within a diversified portfolio, never as a primary savings strategy.
10-year price history
+11100% (2015–2024)Starting value = 100 (index)
Indexed to 100 in January 2015. Based on Bitcoin price in USD. Note the extreme scale — 2017 peak was 28x, 2022 crash erased 70%+ of value. This chart illustrates why crypto is categorised as speculative.
Risks to understand
Extreme price volatility
high riskBitcoin has lost 70–90% of its value multiple times in its history (2018, 2022). Unlike stocks, there is no underlying business generating revenue to support a floor price. A complete loss of value is theoretically possible.
Regulatory risk
high riskGovernments can restrict or ban crypto ownership and trading. China banned it in 2021. The EU's MiCA framework (2024) adds regulation but also compliance requirements that may reduce accessibility.
Exchange and custody risk
high riskFTX, Celsius, and dozens of other exchanges have collapsed, freezing or losing customer funds entirely. If you hold crypto on an exchange and it fails, you may lose everything. Self-custody is complex.
No investor protection
high riskUnlike bank deposits (€100,000 guarantee) or broker accounts (€20,000 guarantee), crypto assets have no regulatory investor protection. If you lose your keys or your exchange fails, there is no recourse.
How to invest in this asset
If you decide to allocate a small amount to crypto, do so only through regulated, well-established platforms.
Only invest what you can afford to lose entirely
This is not a figure of speech. The price of any cryptocurrency can go to zero. Never allocate more than 5% of your total portfolio to crypto — many professionals suggest 1–2%.
Use only regulated exchanges
Choose exchanges regulated in your jurisdiction. In Europe, look for MiCA-compliant platforms. Coinbase and Kraken are among the most established. Avoid small, unknown exchanges.
Stick to Bitcoin or Ethereum
There are thousands of cryptocurrencies. The vast majority will go to zero. If you are going to speculate, Bitcoin (the oldest, most liquid) and Ethereum (the largest smart contract platform) carry somewhat less existential risk than alternatives.
Do not check the price daily
Crypto price movements are extreme and emotionally destabilising. If you invest a small amount as speculation, treat it as money you have already spent and check it at most monthly.
Providers and platforms
Coinbase
Crypto exchange · Min. €2 · MiCA (EU), FCA (UK), SEC (USA)
Largest regulated crypto exchange. Available in most countries. Strong security track record.
Kraken
Crypto exchange · Min. €1 · FinCEN (USA), FCA (UK)
Established since 2011. Good reputation for security and regulatory compliance.
Bitvavo
Crypto exchange · Min. €1 · DNB (Netherlands)
EU-regulated exchange particularly popular in the Netherlands and Germany. Low fees.
iShares Bitcoin ETF
ETF (USA only) · Min. Via broker · SEC (USA)
For US investors: regulated Bitcoin exposure via a traditional brokerage account. Not available in EU.
ETC Group Bitcoin ETP
ETP (Europe) · Min. Via broker · BaFin (Germany)
EU-regulated Bitcoin exposure via a traditional broker. Physical Bitcoin backing. Available on major European exchanges.
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Find my best option →All information on this page is educational only. Historical data does not guarantee future results. Provider links are not affiliate links — we receive no commission. Always consult a licensed financial advisor before investing.