When you start investing in crypto we’re legally obliged to insure that you’re an experienced investor. If you’ve been having trouble passing our knowledge test, here are some useful facts that should help.
Why is this true? Fractional coins are a way for you to invest in cryptocurrencies without having to own the currency itself. That frees you from having to set up a wallet, while giving you the same exposure you would get if you owned it. If you want to know more, read our blog post here.
Why is this true? The first one is obvious — if the price of the cryptocurrency changes, so does your fractional coin. That’s the whole reason you’re invested! The second one may sound scary, but it’s not — if your broker goes bankrupt, they might not be able to pay out your investment to you. This is not a regular occurrence, especially in Germany, but we want to make sure you have all the facts before you invest.
Why is this true? Let’s think about it for a moment. If the price of a fractional coin goes up 10%, so does your investment. If it goes down 10%, same for your invested money. So what’s the largest theoretical amount a coin could sink? Well, it could go down to 0. That would be a 100% loss. It’s not a highly likely scenario, but it is possible. Thankfully, it can’t go down any further.