How To Protect a Relative Buying Their First Cryptocurrency
How to support a family member exploring cryptocurrency for the first time while reducing their exposure to scams and avoidable losses.
Last reviewed: 1 June 2026
Cryptocurrency scams are among the most financially damaging fraud types, and they disproportionately affect first-time buyers who are navigating unfamiliar technology and terminology. Supporting a relative through their first crypto experience — without dismissing their interest — involves helping them move slowly, use reputable platforms, and recognise the tactics fraudsters use to create urgency and excitement.
Understand common crypto scams before the conversation
First-time buyers are most vulnerable to specific types of fraud. Knowing these makes it easier to explain them clearly.
- Investment scams promising guaranteed high returns — no legitimate investment guarantees returns
- Fake exchanges or wallets that appear real but steal deposits
- Romance-investment scams that build a relationship before introducing a 'trading opportunity'
- Giveaway scams claiming to double any cryptocurrency sent
- Impersonation of well-known figures or official organisations endorsing an opportunity
Help them start safely
Starting on a well-established, regulated exchange significantly reduces the risk from platform fraud.
- Research regulated exchanges registered with the national financial regulator
- Start with a small amount — only what they would be comfortable losing entirely
- Use a separate email address for any crypto account
- Enable all available security settings including two-factor authentication
Establish clear decision rules for the future
Agreed rules for before-you-buy moments give your relative a framework to use when you are not there.
- Never invest more than can be afforded to lose completely
- Never act on investment advice received via social media or an unsolicited message
- If someone claims to have made large profits and wants to help you do the same, that is a red flag
- Talk to family before making any purchase over an agreed amount
Conversation script
“I want to be supportive about this — can we just go through a few things first so we can make sure you are starting on a safe footing?”
“One of the biggest rules I have read is: only put in what you would be comfortable losing completely. Cryptocurrency prices can drop very sharply.”
“If anyone ever tells you about a guaranteed return or a special opportunity that has to be done fast, that is a scam. The legitimate versions never need to rush you.”
Frequently asked questions
Should we discourage a relative from buying cryptocurrency entirely?
That depends on family circumstances. A complete prohibition is often counterproductive — it may push the decision underground. A collaborative approach focused on limiting amounts and avoiding scams is usually more effective.
How do we check whether an exchange is legitimate?
Check whether the exchange is registered with the national financial regulator. In the UK, the FCA maintains a register of cryptoasset businesses. Avoid platforms not on such a list.