MINT HILL, NC – Many people have decided that bitcoin is the next big thing – and they are backing up their enthusiasm with dollars. Should you consider putting money into bitcoin or other cryptocurrencies?
You may want to be cautious. Since bitcoin was introduced in 2009, it has gone through periods of big gains and huge declines. In fact, bitcoin is so volatile that it could be thought of as a type of speculation, rather than as an investment.
On the other hand, long-term investors follow a strategy based on their goals, risk tolerance and time horizon. They seek out quality investments as a part of a diversified portfolio. Diversification is key – while it can’t prevent losses or guarantee gains, it can help reduce the effects of market volatility on your investment mix.
Furthermore, investors know that the financial markets are regulated and follow well-defined principles. Cryptocurrencies, on the other hand, are mostly unregulated and may face all sorts of challenges in the future.
Investing versus speculating: It’s your choice, so think carefully about what to do with your hard-earned money.
If you have any questions, please contact me at (980) 859-2549 or by email at Brandon.Monette@edwardjones.com
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