Perhaps you have been curious about dabbling in some cryptocurrency investment, but all the conflicting advice about doing so has caused you to hesitate. Such matters should definitely be considered carefully with the help of an expert, but maybe hearing from a proponent could help set your mind at ease.
Lyle Daly expounds on this for The Ascent, laying out why he personally decided it was worth it.
One reason it appealed to him was because of the risk attached. That opportunity to potentially make a huge profit is tantalizing, and it’s hard not to entertain fantasies about how quickly life could change if you risk it and it pays off.
He cites how Bitcoin was valued at around $5,000 in 2020. Fast forward a year and that value skyrocketed to over $50,000.
However, another reason Daly felt comfortable buying bitcoin is because while it was a risk, he wasn’t gambling everything. He had other investments; he had savings and emergency funds if worst came to worst. Like with any investment, having a safety net for yourself is important.
Another important aspect to consider with cryptocurrency is you might have to be patient for the payoff. Since its value can fluctuate so quickly, you might buy in during a down period and hope it quickly shoots up.
If that doesn’t happen, you need to know things will be steady enough for you that you can wait until its value rebounds. Just because there is potential for quick money doesn’t guarantee it.
“Investing in Crypto is not for the faint of heart,” says Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group. He recommends clients get their entire portfolio “in order” before dabbling in the crypto market.
“The real value is in the blockchain technology, which is the backbone for crypto. That, however, is not something you can invest directly in, but that will be a technology that will lower costs for most industries moving forward”, says Hubler.
As mentioned previously, you should speak with a financial expert like Fred Hubler at Creative Capital Wealth Management Group who can guide you through any decisions you are considering. But in the meantime, it never hurts to have more information to help you decide.
If you are still on the fence about whether cryptocurrency is a smart investment for you, check out what The Ascent has to say here or register to attend the Dispelling Bitcoin and Cryptocurrency Myths NoonZOOM on Oct. 21st.
Break through the myths and confusion of Bitcoin and gain a deeper understanding of cryptocurrencies in a lunchtime NoonZOOM webinar entitled “Dispelling Bitcoin and Cryptocurrency Myths” happening Thursday, October 21, at noon.
Fred Hubler, the Chief Wealth Strategist of Phoenixville-based Creative Capital Wealth Management Group, will sort through seven myths about Bitcoin, including:
- Bitcoin is a bubble and buying it is a big gamble.
- Bitcoin isn’t secure and has no real uses or value.
- Bitcoin will soon be replaced by another cryptocurrency.
- Bitcoin is bad for the environment.
An interactive Q&A will follow Hubler’s presentation.