Because the entire trading system is still unregulated, the Bank of Slovenia is warning potential investors to be careful.

The astronomic growth rates of some cryptocurrencies, which can be several thousand percent, often trigger greed and the desire for profit. The reaction is expected, says Timotej Strnad, a psychologist from the company OK Consulting: "When our neighbor gets rich by trading in cryptocurrencies or tulip bulbs, and we get the fear of missing out, we call that the FOMO Effect."

Despite the enormous profits of some traders, people need to realize that the cryptocurrency bubble, based on the increasingly popular blockchain technology, can burst, cautions the Bank of Slovenia's Vice President in the Payment Department Anja Rijavec Uršej. "It's not against the law to buy or own cryptocurrencies, but people must be aware of the associated risks," she says.

As is customary in the world of stock trading, we must study the currency we're buying before we decide to purchase it, advises Marko Pahor from Ljubljana's Faculty of Economics. "We you understand and believe this, you can make a dispersed purchase and hold on to it long-term, just like stock," says Pahor.

Cryptocurrencies are not regulated because the European Commission is still analyzing how it wants to regulate and tax them. Traders want clearer rules. According to Mare Kraupner, the owner of the Crypto Trade Pro Mare app, "Only when the cryptocurrency world is regulated will big money enter this field."

That's when institutional investors could begin to purchase cryptocurrencies.