Cryptocurrency fever has ignited a digital gold rush.
More people than ever are excited about digital currency, and they’re diving into the crypto space for all sorts of reasons.3 Excitement, speculation, and the desire to be part of a new technology are just some reasons for the frenzy around cryptocurrency.
And it’s not just the little guys who want to stake their claims in the crypto space.
Publicly traded companies see digital currency as a way to hedge against inflation. That’s why some own billions in cryptocurrency.16
All of this has given digital currency strong staying power.
But it doesn’t change the risks or make this new asset class any less volatile. And it doesn’t mean it’s right for you.
Cryptocurrency is still highly speculative.
Without any intrinsic value, digital currency is incredibly vulnerable to huge price swings. That means a sudden boom — or bust — could take any investor for a wild ride.
Before jumping in, think about your objectives and your reasons for wanting to invest in cryptocurrency.
Are you afraid of missing out?
Are you prepared to withstand some big swings? Are you willing to lose it all?
These are just some of the questions you need to ask yourself to figure out if crypto truly makes sense for you.
The bottom line?
Cryptocurrency’s growing popularity and flashy headlines play to our emotions. The excitement and promises of big gains can push us to dive in before we really know the risks we’re taking on.
If you understand the basics, though, you can resist the temptation that comes with crypto fever, and you can set more realistic expectations when it comes to digital currency. You’ll also be setting yourself up to make better, more rational decisions in the face of any new “hot” financial trend.