Is Cryptocurrency a Good Investment?
Cryptocurrency. A buzzword in today's financial market and seemingly the currency of the future. Much is made of this topic in today's media, with new cryptocurrencies coming to market all the time, and banks and other financial services beginning to dip their toes in the arena. For someone who wants to make sure they don't miss the next big thing (cries in remembrance of $0.10 Apple stock), cryptocurrency seems like the perfect next investment. And for some, it may be. But like any investment venture, there are risks and other factors to weigh in determining if this particular opportunity is for you.
Compared to stocks, cryptocurrencies are relatively new. Cryptocurrency rose from humble beginnings when it was first created in 2009 by an anonymous developer (or group of developers) under the pseudonym Satoshi Nakamoto. The original Bitcoin system paved the way for other products, sometimes known as "altcoins," which refers to cryptocurrencies besides Bitcoin. Amongst these are Litecoin (LTC), Dogecoin (DOGE), Namecoin (NMC) and Peercoin (PPC).
Because these currencies don't have a long history like other stocks, they can seem more like a gamble than an investment. However, with proper preparation and research, you may be able to identify a cryptocurrency that will fit nicely into your portfolio and may even yield a hefty return down the line.
The key is to research your options, prepare your portfolio accordingly, and plan to hold the investment for the long term. Because cryptocurrencies are still finding their footing in our financial market, it's best to give them time. Invest what you feel comfortable with knowing that the financial landscape is making room for these alternative currencies, but that cash is still king. If you are risk-averse, it may be best to wait a while longer before taking the plunge.
At Bundlefi, we can help you find a community bank or credit union that facilitates cryptocurrency trading. We can also connect you with a financial institution you can grow in relationship with over time just as, (hopefully), your cryptocurrency investment grows in value.