As An Emerging Industry, Crypto Market is Volatile
Investing in cryptocurrency is a hot trend. It can be highly profitable, but you can also find all your money is unexpectedly lost. Is digital currency right for your portfolio? Yes, if you reduce the risk with strategies that safely turn this emerging asset class to your advantage.
The crypto market started more than 10 years ago but is still largely unregulated. Like the Wild West of old, rules are being created as they are needed.
Safely storing cryptocurrency is far more difficult than owning stocks or bonds, and cryptocurrency exchanges that sell the digital currency are vulnerable to being hacked. This asset class is maturing, however, and its legitimacy is becoming better established. Forbes.com reports that a 2020 trend toward lower volatility is one indicator that the market is beginning to stabilize.
Another indicator is the rising selection of more regulated, exchange traded funds (ETF) in which crypto figures prominently. Your Carte Financial Advisor can show you which ETFs are worth considering.
The currency is also gaining wider acceptance by merchants. Venmo, and parent company PayPal Holdings, are now accepting crypto. Companies such as Tesla and Square have been investing significantly in Bitcoin.