Here’s the most important thing to do before investing in cryptocurrency
Bitcoin and cryptocurrency have made headlines for big gains and losses this year. Some have made millions. Others have lost everything. Those dramatic scenarios aside, is cryptocurrency something that you should be adding to your investment mix?
Before you hand over your life’s savings and jump on the crypto bandwagon, let’s take a look at the pros and cons of buying crypto and examine the most important consideration before diving in.
Pros
Potential for much higher return on investment
Unless you’re extremely risk-averse, it’s not a bad idea to put some funds into cryptocurrency. Some of the most exponential gains of the last decade have been made through crypto investing.
Having said that, it’s also made for some crippling losses. The key here is to work with a financial advisor who understands cryptocurrency, along with traditional investing. This is the most critical step to evaluating how much risk you can afford to take on.
Users are anonymous
Personal information, like your name and address, isn’t linked to the cryptocurrency you send or receive. This makes crypto a chosen tool for those up to some lessthan-legal activities, but it also gives peace of mind to those concerned about their online privacy.
It’s accessible
Provided you have a cell phone, you can buy, use and manage your cryptocurrency 24-7. You don’t need a fancy setup or even a computer to dabble in cryptocurrency — just internet access and a little crypto know-how.
Cons
No protection from scammers
You know how if you’re scammed via your credit card or bank account, your bank will (usually) work with you to recoup what you’ve lost? That’s not the case with crypto. No authority to oversee operations, plus opportunists looking to cash in on emerging technology and inexperienced users, means you’d better keep a close eye on your cryptocurrency. Having a well-versed financial advisor who knows crypto comes in handy here once again.
It’s volatile
One minute, your crypto could be worth millions and the next, you’re on the phone with an insolvency lawyer. (We sincerely hope not, but you get the point.) Crypto is unpredictable as far as how its value will perform. If you’re looking for a stable and steady investment vehicle, crypto might not be it.
It’s challenging for the tech-challenged
Bitcoin? Blockchain? Crypto? If this is all sounding like a foreign language, you might be more than a little hesitant to put your money on the line. Fair enough. Crypto is not the easiest to understand if you don’t speak tech or have some understanding of investing.
The good news? There are people who do speak tech and understand what crypto is all about. Professionals are more equipped than ever before to guide you through the process and help you determine if this is the right option for you and your money.
Finding the right financial advisor can help you invest in a way that makes sense to you. At the end of the day, it’s not about keeping up with the latest investment trends as much as it is about growing your money by investing intelligently.
To find a financial advisor who understands the world of cryptocurrency, Canadians are using Vexxit. After answering a few easy questions about what you’re looking for, they deliver you options best suited to your needs and the choice of who you want to work with is up to you. Discover why Vexxit is Canada’s leading choice to find a financial advisor, accountant, lawyer and consultant at vexxit.com.