After reading countless success stories about cryptocurrency on social media, Martin Dasko, a 36-year-old money blogger in Toronto, decided in March 2021 to look into crypto for himself. His father had been an early adopter of ether, the native token of the Ethereum platform, but when Dasko mentioned his plans his dad responded with skepticism—mocking crypto’s rapid rises and steep falls and warning about weak regulation and poor corporate governance. Dasko ignored the warnings, did his own research and invested a modest amount to test the waters.
Talking about crypto with your family
Cryptocurrency prompts different reactions across generations and households. Some family members will be curious and open, others wary or outright dismissive. Bridging that gap often means younger adults explaining the basics while listening to concerns from older relatives.
“These conversations can feel like reverse mentoring,” says Robin Taub, Chartered Professional Accountant and author of The Wisest Investment. “Many millennials and Gen Z adults understand digital technology and blockchain concepts more readily than their parents.”
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Navigating family money conversations
Before you bring up crypto, assess your family’s general approach to money. Did your parents talk openly about finances when you were growing up, or was money a taboo subject? Many parents avoid money talks because they lack time, knowledge or confidence, or because they feel embarrassed about their financial situation.
When you’re ready, be direct: “I’d like to talk about crypto. Can we set aside some time?” A clear, calm invitation frames the conversation and signals you want a serious discussion.
Shannon Lee Simmons, Certified Financial Planner and founder of The New School of Finance, suggests acknowledging that the conversation may feel different than usual and setting expectations about what role crypto might play in your family’s finances.
If your family already discusses money regularly, you can start with: “I’m curious about crypto and want to experiment a little as part of my finances. Can I explain my approach?” That opens the door without forcing anyone into technical details they don’t want.
Explaining how crypto works
At its peak in late 2021 the crypto market surpassed USD$3 trillion, and although market capitalization has since fluctuated, interest remains strong—particularly among people aged 18 to 34. Cryptocurrency prices follow familiar market forces such as supply, demand and competition from other tokens, and the sector reacts to news and regulation just like equity markets.
Before explaining crypto to anyone, make sure you have a solid grasp of the subject yourself. A clear, simple explanation will help your family follow along and ask useful questions.
1. Start with the basics
Explain that cryptocurrency is both a digital asset and a developing form of payment technology. While a few merchants accept crypto as payment, most people treat it like an investment—something bought and sold on exchanges or accessed via exchange-traded funds (ETFs).
2. Explain how it’s used
Cryptocurrencies are built on blockchain technology—a distributed digital ledger that records ownership and transactions across a network of computers. The ledger is transparent and tamper-resistant, which helps explain why people value the technology.
3. Be open to questions
Expect questions like “Why do we need a new form of money?” Clarify that crypto differs from fiat currency because it’s not issued by a central bank. That brings both potential benefits (speed, lower fees in some cases) and risks: there’s no central authority to restore lost funds if something goes wrong.
Also explain there are thousands of coins; the largest by market cap include bitcoin, ethereum and tether. Keeping the explanation high level helps avoid overwhelming listeners.
4. Acknowledge volatility and risk
Be candid about the risks. Crypto is highly volatile: some investors have made large gains, but many have also lost substantial sums. Demonstrating that you understand these risks and have a plan to manage them will help build credibility with family members.
Simmons advises showing parents how you would use a reputable Canadian trading platform and how you plan to secure assets—steps that can reduce anxiety about scams and operational risks.
5. Explain how you will (and won’t) use crypto
Discuss where crypto fits in your broader portfolio: your goals, time horizon and appetite for risk. Avoid framing crypto as a way to chase short-term gains like covering next month’s rent. A balanced approach—allocating a small, clearly defined portion of your portfolio to crypto—tends to be the most prudent strategy.
How to answer questions about crypto investing
Here are some common questions parents ask and how you might respond.
1. “Isn’t crypto just like gambling?”
It can feel that way because prices move quickly and trading is easy. Explain your approach: research, stick to established coins or ETFs, use reputable platforms, secure your holdings and focus on long-term goals rather than short-term speculation. Also note that regulation in the industry is growing, which should improve investor protections over time.
2. “What if you lose money?”
Be honest: you can lose your entire investment. That’s why common advice is to invest only what you can afford to lose. Think through exit rules—when you’ll sell, how you’ll respond to sudden drops—and make sure you can handle the financial and emotional ups and downs.
People who invested only a small amount have generally coped better than those who doubled down after early wins and later suffered large losses.
3. “What about crypto scams?”
Scams are a major concern: investment fraud reports cost Canadians hundreds of millions in recent years. Explain the steps you take to avoid scams—use reputable trading platforms, be skeptical of social media hype and avoid offers that sound too good to be true. Check platform registration with relevant regulators before transferring funds.
What if your parents want to invest in crypto?
If parents ask you about investing, encourage caution. Older adults have less time to recover from large losses, so a conservative allocation—often 1% to 5% of a diversified portfolio—may be more appropriate than a large stake. Those nearing retirement should carefully reassess whether volatile assets suit their goals. If they need personalized advice, a qualified financial advisor can help.
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Be cautious with crypto
Crypto can deliver big gains, but it can also result in sharp losses. Only invest money you can afford to lose and consider whether you’re prepared to hold through big swings. Crypto gains are taxable in Canada as capital gains or business income—report them appropriately to avoid penalties.
The crypto landscape continues to evolve. Keep researching, stay cautious, and maintain open dialogue with your parents so you can learn together. Dasko ultimately combined his research with conversations with his father—who still held ether—and both came away with a clearer view of the technology and its risks.
Read more about crypto:
- Crypto marketing: What can be said—and not said—in Canada?
- How to protect your crypto from hacks
- Which cryptos will survive in the long term?
- How to gain exposure to crypto without buying it