Cryptocurrencies News: More and more people are buying cryptocurrencies every day. Should you follow them? There was a time when cryptocurrency was one of those things most of us heard about but didn’t know much about. But that has changed in recent years.
According to new research by The Ascent, an estimated 14% of US adults today own some form of cryptocurrency. This corresponds to approximately 21 million people. Not only that, more than 50 million Americans are likely to purchase cryptocurrency next year. This includes 22% of people who have never bought a cryptocurrency before. At this point, you may be one of the people who are considering adding digital currency to your investment portfolio. But is it a smart move for you? To find out, you can ask yourself these important questions.
1. Do I understand what cryptocurrency is and how it works?
Many people have heard of cryptocurrency, but do you really understand what it is and how to buy and sell it? Make sure you do some reading about digital currency before you rush to own it.
2. Have I narrowed down the correct currency to buy?
When we talk about digital currency, it’s natural to think of well-known coins like Bitcoin and Ethereum as they tend to get a lot of pressure. In reality, there are many different types of digital currencies – over 10,000. So don’t assume the most popular ones are right for you.
3. Does buying cryptocurrencies fit my overall investment strategy?
While 65% of Americans who own or have owned cryptocurrency usually sell it within a year, that doesn’t mean you have to go the same route. As an investor, your goal may be to build a solid portfolio that is highly valuable over the long term. Or your goal may be to take some risks today in the hope that they will pay off in the short term and then build a separate portfolio for long-term goals. Neither right nor wrong approach – it’s a matter of personal preference. But either way, you should make sure that buying cryptocurrencies aligns with the overall strategy you’ve set for yourself.
4. Do I understand the risks?
There is no such thing as a risk-free investment. When you open and invest in a brokerage account, there is a possibility that some or all of the financial instrument you purchased may lose value over time. But like stocks, digital currency can be volatile. So before you invest there, make sure you understand the risks you are taking. One of the big risks you take when you buy digital currency is that we don’t know whether the digital currency will be a widely accepted form of payment and this will largely determine its ultimate value. Keep this in mind when making your decision.
Obviously, interest in cryptocurrency is really growing, but before you buy it yourself, make sure it’s right for you. There’s a lot of money to be made in the digital currency market, but do your research beforehand and make sure you’re investing for the right reasons.
Buy and sell digital on an expert-selected exchange. There are hundreds of platforms waiting for you to access thousands of digital currencies worldwide. And to find the right one for you, you will need to decide on the features that are most important to you.