Is Crypto Right for Me? 7 Ways to Tell

TLDR

• Crypto isn’t for everyone.
• We’ve come up with 7 ways to tell if it is.
• Nearly 100 Million Americans are currently participating in crypto in some way.

Cryptocurrency is everywhere. From your tech-savvy cousin raving about Bitcoin to those headlines about people cashing in millions. It’s hard not to get curious, isn’t it? There are now close to 100 million US citizens participating. Maybe you’re wondering if it could be your next big move. 

Here’s the thing about crypto: it’s not for everyone, and that’s perfectly fine. But if you’re someone who’s itching to break away from traditional finance, willing to learn, and ready to take control of your digital wallet, you might just be crypto material. 

Still unsure? Here are seven ways to figure out if dipping your toes into the world of cryptocurrency is the right move for you. 

1. You’re Tired of Banks Making Money Off You 

You’ve probably noticed that banks make a lot of money off your money. They take your deposit, lend it out for high returns, and give you…what? A savings account offering 0.01% interest? You don’t even earn enough to buy coffee from that interest. 

Crypto flips this concept. Instead of a middleman (the bank) controlling your funds, cryptocurrency gives you direct ownership of your assets. Some platforms even offer compelling alternatives, like staking or yield farming, which can earn you a much higher return than your savings account. 

That said, higher returns come with risks (we’ll get to that). But if you’re fed up with banks profiting off your hard-earned money while you get crumbs in return, crypto could offer a refreshing alternative. 

2. You’re Sick of Being Rejected for Loans 

Have you ever been turned away by a bank because your credit score isn’t “good enough”? Or jumped through more hoops than a circus poodle to get a loan? 

With crypto, decentralized finance (DeFi) changes the game. Platforms like Aave or Compound allow you to borrow crypto instantly — without explaining your life story or submitting to yet another credit check. 

Instead of relying on credit scores, DeFi lending works on over-collateralization. Essentially, you provide some crypto as collateral to secure a loan. It’s straightforward, accessible, and…well, no awkward calls from the bank asking, “Exactly why do you need that money?” 

Just remember, decentralized lending platforms don’t operate with the same consumer protections you’re used to. That raises the stakes, so proceed thoughtfully. 

3. You Know as Much About Crypto as You Do the Stock Market 

Here’s a common worry from beginners like you: “I know nothing about crypto — is that a dealbreaker?” Not in the slightest. You already have transferable knowledge if you’ve dabbled in or even just heard of the stock market. 

Crypto has parallels to stocks. Prices go up and down based on demand, market news, and investor confidence. Some cryptocurrencies (like Bitcoin) are considered a digital asset with long-term value, similar to gold. Others (like Ethereum) have utility beyond investments, powering technologies like smart contracts. 

The key here is this — if you’re willing to learn, you’re already ahead of the curve. Research every new term, follow reputable crypto guides and use resources like CoinMarketCap or crypto exchanges to track market trends. Start small, familiarize yourself with the basics, and commit to learning as you go. 

4. You’re OK With Volatility 

If you lose sleep staring at your stock portfolio because prices dipped 3%, crypto might be…challenging. The market’s highs and lows are nothing short of dramatic — Bitcoin’s price once dropped by 50% in one month, only to recover and achieve record highs later. 

Volatility is a core feature of crypto, not a bug. If you’re going to step into this world, you need to accept that. On some days, your portfolio might look more like a rollercoaster than a straight path to wealth. 

But here’s the pro tip seasoned crypto fans swear by: avoid overinvesting. Never bet money you can’t afford to lose, because crypto isn’t a guaranteed payday. If you’re fine riding that wave, then you’re primed to explore crypto’s possibilities. 

5. You’re Willing to Learn and Educate Yourself 

Crypto isn’t a “set it and forget it” game. You can’t stumble in, throw money at Bitcoin — or whatever’s trending — and expect to win big. 

This space evolves constantly. One day, everyone’s talking about NFTs (non-fungible tokens). The next, DeFi staking or Layer-2 solutions dominate the conversation. To thrive in crypto, you need to keep your skills sharp and stay updated on trends. 

That means doing your homework. Read blogs and guides. Watch YouTube tutorials. Follow thought leaders in the industry. If you’re open to learning, you have what it takes to start. 

6. You Have Excellent Risk Management Skills 

Are you someone who plans for emergencies, budgets wisely, and generally avoids impulse purchases? If so, you’re already ahead of the pack. Good risk management is one of the most important skills for any crypto user. 

Here’s how risk management applies in this space:

• Diversify Your Portfolio: Don’t bet everything on one cryptocurrency, no matter how hyped it is. Spread investments across different high-risk and lower-risk assets. 
• Don’t Over-Leverage: Avoid borrowing excessively just to buy more crypto. If the market dips unexpectedly, you might lose more than you planned. 

If these strategies sound doable (or naturally align with how you treat your finances), crypto might suit your temperament. 

7. You Prioritize Security in Your Everyday Life 

Crypto isn’t just about buying coins and crossing your fingers. Security plays a huge role. You’re set up for success if you’re already cautious about protecting your personal information online. 

This means using best practices like:

• Private Wallets: Store your crypto using wallets like hardware wallets (Ledger, Trezor) with strong safety protocols. Never leave large amounts on exchanges. 
• 2-Factor Authentication (2FA): Enable 2FA on every account you have — exchanges, wallets, emails — everything. 
• Scam Awareness: Crypto scams are real. Phishing emails, fake airdrops, too-good-to-be-true offers…do your research before clicking any links. 

If you’re paranoid about random popups or giving apps access to your data, that vigilance will definitely pay off in the crypto world. 

Next Steps for You 

If reading this made you nod your head more than once, it might be time to dip your toes into crypto. Start small. Choose a reputable exchange like Coinbase or Kraken for your first purchase, set up a secure wallet, and experiment with a tiny investment. 

Crypto isn’t for everyone, but for curious and financially self-aware individuals like you, it could be an opportunity to take control of your financial future in a whole new way. 

Want to learn more before you start? Check out our beginner-friendly crypto guides, follow our socials, and join our newsletter for tips straight to your inbox and FYP.