Before you start with crypto

Before you start with crypto

You are considering buying Bitcoin or other cryptocurrencies for the first time. Perhaps you have seen interesting price movements or heard stories about staking and possible returns.

But what are you really buying? How do you check a crypto platform? Where do you store your crypto? Which costs do you pay? And what happens if your wallet is hacked, a platform goes bankrupt or your investment loses all its value?

FOREFACT researches what you need to know before you start with crypto in the Netherlands. From Bitcoin and blockchain to trading platforms, wallets, security, taxes and financial risks.

What will you discover in this research?

• The crypto market: what Dutch market data says about crypto ownership and why popularity is no proof of a good investment.

• Bitcoin and altcoins: how cryptocurrencies differ and what you need to understand about tokenomics, market value and liquidity.

• Stablecoins: why a stable price is not guaranteed and which risks exist around issuers and reserves.

• Checking crypto platforms: how to assess exchanges and brokers and verify licence information via the Dutch financial markets authority (AFM) and ESMA.

• Trading costs: how transaction fees, spreads, slippage and withdrawal fees affect your actual result.

• Wallets and security: the difference between storage with a provider and managing your own private keys and recovery phrases.

• Recognising fraud: which warning signs exist for phishing, fake platforms, misleading projects and recovery scams.

• Staking and leveraged products: why attractive returns and borrowed money can cause considerable losses.

• Regulation and taxes: what MiCA, the Dutch box 3 tax rules and DAC8 mean.

• Financial risks: how to assess losses, recovery percentages and the consequences of a wrong purchase.

• Preparing your first purchase: which checks to carry out before you deposit money, buy crypto or transfer it to a wallet.

Including practical financial models and checklists

The research report contains practical tools to help you prepare a possible purchase.

Among other things, you will find:

• Ten practical financial models for costs, price losses, liquidity, staking and taxes.

• A step-by-step plan for checking a crypto service provider.

• Comparisons of crypto assets, trading methods and wallets.

• Five worksheets for asset research, licences, costs, security and decision-making.

• A step-by-step plan from the first check to purchase, storage and record-keeping.

• Concrete fraud checks and clear stopping points.

• A GO/POSTPONE/STOP assessment before you buy.

Why not buying is sometimes the best decision

A cryptocurrency can rise sharply while the project cannot be adequately verified. A trading platform can seem reliable without you having enough certainty about the legal entity, custody or withdrawal conditions.

That is why FOREFACT does not help you predict the next price winner, but helps you understand which risks you are accepting and when you are better off not transferring any money.

Not buying is also a valid outcome of good research.

Who is this guide for?

For beginners who are considering cryptocurrencies and first want to understand how the market, trading, custody and regulation work.

Also suitable for people who have doubts about a crypto platform, wallet, stablecoin or staking product and want to assess the associated risks better.

What do you receive?

FOREFACT guide — 50 pages (PDF)

Extensive research into starting with crypto in the Netherlands, including blockchain, cryptocurrencies, exchanges, wallets, trading costs, security, fraud, regulation and taxes.

Including ten practical financial models, 42 research checks, five worksheets and a practical decision protocol.

Research market: the Netherlands, with European and international context
Delivery: digital, via download after purchase.
Language: English

This research is based on 36 public sources, including the AFM, ESMA, the Dutch central bank (DNB), the Dutch Tax Administration (Belastingdienst) and European legislation.

Crypto involves considerable financial risks. You can lose your entire stake. The report provides independent information for your decision, not buying advice, return forecasts or personal financial, tax or legal advice.

FOREFACT — Know it before it costs you.