Through social media, children and teens hear that young people are making millions from cryptocurrencies. Because trading via the smartphone is booming, these role models can be quickly emulated. Trading via apps is easy, but it still needs the appropriate knowledge. This makes it all the more important that parents address the topic of “cryptocurrency” with their children – and critically question it. How to recognize lure offers?
As a basic attitude, young people should learn to always be critical and cautious in everything that is offered and to rely on trustworthy sources of information. The following also applies when dealing with crypto currencies: Preventive education protects against traps and greater knowledge promotes a deliberate approach. What is a cryptocurrency?
A cryptocurrency, for example Bitcoin or Ethereum, is a digital currency that can be used to buy things on the Internet. It is neither managed by a country nor by a bank. To acquire cryptocurrencies, one must either be very knowledgeable in the IT world or use an online platform to buy cryptocurrencies in exchange for standard currencies (CHF, Euro, Dollar, etc.). Easy money or deceptive expectations?
The peculiarity of crypto currencies is that their value can rise quickly in one day, but can also fall again on the same day. So it’s not easy to buy or sell cryptocurrencies at the right time. Not only can you win, but you can also lose your money very easily. Since the principle of supply and demand applies, caution is advised. As long as a particular cryptocurrency is in demand, its value remains high, as soon as demand decreases, it also decreases again. What do influencers intend to do?
Influencers advise in social networks to invest in this or that cryptocurrency. There is often a certain intention behind this: because they themselves have invested a lot of money in this currency, they try to get others to do the same. Their goal is to increase the value of the cryptocurrency through increased demand and resell it afterwards at a profit. Creating new cryptocurrencies with the sole goal of getting rich is easy and fast. But beware, there are also cases of fraud! Therefore, one should be careful and inform oneself well each time about the background of the cryptocurrency in question before investing anywhere. What promises lure dubious companies with?
Increasingly, parents in Switzerland are also reporting that their children are being contacted online in young adulthood. Big promises are made and expensive courses and documents for investing in crypto currencies are offered. Young people should be persuaded to be trained by certain companies in order to simply earn additional money with cryptocurrency. In this way, companies or individuals elicit a lot of money from young people over a longer period of time. What are the risks?
With cryptocurrencies, there is not only a high risk of losing money, but also the risk of becoming addicted. As with gambling in the casino, some people are obsessed with the fluctuations of their investments. They want to know day and night how much money they own in the form of cryptocurrencies. Always with the aim of earning a lot of money in the shortest possible time in order to fulfill material wishes, compensate for losses or repay debts.