Investing in crypto - a Q&A

News item -

Last year the hype around crypto coins and blockchain reached a high in society and prices of crypto coins skyrocketed on financial markets. This year, the story is more painful and the fear of missing out has abated. Is the hype over or are circumstances normalised? Will the technology of blockchain, crypto coins and initial coin offerings (ICOs) evolve with time? These are still interesting questions.

This client publication is an informative piece about crypto coins and investing in them. It is written for clients that are already a bit familiar with crypto coins. Clients that are not so much into crypto coins can read it as well, but some parts might be a bit technical.

In this publication, we describe the conceptual framework of crypto coins. What are they, how do we define the different types of crypto coins and how do we look at them from a risk/return perspective. We do not give an opinion or advise on the different kinds of crypto coins like Bitcoin, Ripple, Ethereum, Bitcoin Cash or on companies active in crypto coins or blockchain that are mentioned in this informational document. This paper answers the following ten questions:

  1. What is a crypto coin?
  2. How big is the world of crypto coins?
  3. How can you trade and store crypto coins?
  4. Does ABN AMRO advise clients on crypto coins?
  5. How does ABN AMRO classify crypto coins?
  6. What is the risk-return profile (business cycle)?
  7. Are crypto coins a new asset class?
  8. How sustainable are crypto coins?
  9. How do the Dutch tax authorities look at crypto coins?
  10. What are the challenges, opportunities and misconceptions?

Download the paper below.