Date: September 28, 2021
Is Investing in Cryptocurrencies For You?
Investing in Cryptocurrency assets is risky, but also potentially extremely profitable. It falls into the “High Risk, High Reward” category of investments. Cryptocurrency is a fast-growing, but highly volatile and speculative market. If you can afford to lose the money you invest and are willing to keep your investment for a long period of time, then it might be a good idea! I always tell clients not to invest more than they are willing to lose when it comes to crypto due to the constantly evolving nature of the security.
A study by the New York Digital Investment Group determined that about 46 million Americans own at least one share in Bitcoin (and other cryptocurrencies).
Experts recommend keeping crypto in your portfolio at a low percentage. They also recommend that investors buy cryptocurrency using strategies similar to those used for stocks, such as dollar-cost averaging. This means you put small amounts of money consistently into this new type of currency instead of buying all at once with large sums as many other people do from fear and buzz around it increasing its value overnight!
Upside: If you want a reliable source of value that is not subject to inflation, then crypto may be the solution. Cryptocurrency experts have predicted Bitcoin will overtake the U.S. dollar as the dominant form of global finance by 2050 and go over $66,000 this year (Entrepreneur Magazine, 2021)!
Downside: If you’re looking for more stability in your investments, look elsewhere. Crypto is volatile and risky as it has wide swings all the time. Bitcoin is a risky investment for many reasons, but one of the most pressing ones might be that there’s no company backing it up like traditional stocks. Mining for Bitcoin is also extremely detrimental to the environment with all the energy consumption required to keep the servers doing the mining from overheating. Investing in your future is important, yet it’s one of the most often overlooked pieces of managing your money. Do you want to retire with more money in the bank? We work with our clients to help them retire with AT LEAST an extra 1 Million in their retirement. How soon can YOU reach 1 Million in your retirement?
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