Can You Handle Crypto? Take My Quiz!

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To help you decide whether you can handle cryptocurrency’s volatility, I put a little quiz together for you. This is not a multiple choice test where only one of the three options is correct; in fact—none of these answers are wrong, or right. This is merely a teaching tool to help you decide if cryptocurrency is a good fit for your investing sensibilities.

Here's Part 1:

1. Choose one of the below words to describe yourself...

A: Fun

B: Unflappable

C: Reliable

2. Your boss asks you to give a presentation on a topic you know nothing about. You say…

A: Hell yes! This sounds like an awesome opportunity to prove myself.

B: Would it be possible to work with a team to give the presentation?

C: I don’t feel confident that I could knock it out of the park without knowing the subject matter. Is there another opportunity to give a presentation on something more in my wheelhouse?

3. Do you invest in the stock market?

A: Hell yeah! I eat stonks for breakfast.

B: Yes, but not directly. I have a retirement account through work that is invested in the market.

C: Hell to the no! You want me to go broke?? Just thinking about the stock market makes me nauseous.

4. You get a bonus you weren’t expecting. Awesome! You just moved, so you use the money to…

A: Buy the couch you’ve been drooling over.

B: Snag some cleaning supplies and other immediate purchases on your to-do list.

C: Put down a payment for a new roof. The last owners said things were looking a little saggy.

5. Thoughts on lottery tickets?

A: Love ‘em.

B: Like ‘em

C: Leave ‘em

6. Your friends are going through a haunted house. You are:

A: The leader of the pack.

B: Comfortable in the middle, holding hands with a pal next to you.

C: At home.

The results are (partially) in...

If you answered all or mostly Cs, you don’t like to risk-it-for-the-biscuit, you’d rather take zero risks and let the biscuits fall where they may. You’re more of a conservative investor, which means that you will prioritize minimizing your chances of losing money, even if it means missing out on some gains. Because of that, a volatile option like cryptocurrency won’t be a good fit for you.

If you answered all or mostly Bs, you’re an even-keeled cool guy with a healthy attitude to assess risk and reward. You’re a good candidate for a modest investment in crypto.

If you answered all or mostly As, you’re the life of the party whose carpe-diem attitude may translate into aggressive investing behaviors—seeking the highest possible reward without flinching at the possibility of losing money. You’re a good fit for crypto, hell, you may already be in crypto, but you’re also at risk of being too at risk. Remember that any dollar you put into crypto, you could lose.

Now, you might consider yourself a thrillist, but should you act that way with your wallet? Maybe, but maybe not. That depends mostly on your age, but also when you need your money, how much money you can afford to lose and what you want to get with the money you invest.

For some basic guidelines for the level of risk you should take on, here’s Part 2 of the quiz:

1. How old are you?

• A: 18–34

• B: 35–44

• C: 45+

2. What is the next big purchase you are focused on?

• A: Nothing on the horizon, but a second house or car would be nice!

• B: My kid’s college education.

• C: Living a sweet retirement.

3. When is your next big purchase?

• A: 15+ years

• B: 10–15 years

• C: 5 or so years

4. I expect my income to:

• A. Increase! I am getting a raise or jumping to another job with a higher salary.

• B. Stay the same. I’m tenured and have no worries that my salary will change significantly in the next few years.

• C. Decline in the next few years; unfortunately my job is on shaky ground.

The results are in (for reals):

If you answered all or mostly Cs in Part 2, you should be more conservative with crypto investing because you are older, have a more of an urgent need for the money or have uncertainties with your future income. If you answered all or mostly Bs, you should be a more moderate investor because you don’t need the money too soon or you have a steady income stream. If you answered all or mostly As, you’re in good shape to dive into crypto because you have a long time horizon for your investments or are flush with cash to play with.

So for once and for all, let's determine what your risk tolerance is and what it should be. If you found you answered mostly Cs on both quizzes or strongly on the second one, you’ll be most successful by making conservative moves with crypto. If you answered mostly As on both, then you’re a good candidate to take a bigger crypto position. If you answered mostly Bs on both, or Cs on the first and As on the second, then you my friend, are a moderate investor, and should consider sprinkling some crypto in your portfolio. Tada! Now you know.

xo,

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