How to Manage Unexpected Risks with Crypto
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.
Many investors who buy crypto coins or tokens have run into unexpected danger with this unregulated market. Forced to provide their own security, they’ve had their crypto wallet hacked and their wealth stolen.
Many others have lost their passwords and been literally locked out of their wealth. The New York Times reported in January, 2021 that, of the existing 18.5 million Bitcoin in existence, about 20% appears to be lost or located in stranded wallets. At that time, the estimated value was $140 billion US.
People forget their passwords every day, but in this industry the result could be heartbreaking. If you don’t want to be responsible for managing your own financial security, a cryptocurrency exchange traded fund (ETF) is a better choice.
Your Carte Financial Advisor can show you this safer option. An ETF gives you exposure to the broader cryptocurrency economy and diversification that reduces your investment risk.