There are many people who see the rise in the cryptocurrency market as an opportunity and do not want to miss this opportunity.. So how should the investment be made?
Should we transfer all our savings to Bitcoin?
One of the most popular investment methods of recent times is cryptocurrencies. Considering the circumstances of the countries and the conditions we live in, we see that the trend towards cryptocurrencies has increased.
The returns of cryptocurrencies have reached very high levels.. The effort not to miss the train stands out as the most important reason for the increase in orientation.. Another reason is to protect savings from the effects of the inflationary period that countries are in, especially due to the epidemic.. The third reason is the technology behind cryptocurrencies, which is the variable that a rational investor should put first, and the future of this technology.
The interest has reached such high levels that the total market volume of cryptocurrencies has reached $ 2.5 trillion.. This represents an increase of almost 300% compared to the last year.
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Various warnings from experts on how investors should invest in cryptocurrencies
Nj.com’s Karin Price Mueller touched on this in her column. Mueller answers a question posed to him in his column.
The question is this: My father is 78 years old and has about $1 million in pension funds.. Now he’s talking about buying Bitcoin or investing in stocks he reads about on social media. How can I get him to stick with mutual funds?
The question actually reflects what’s on the minds of anyone with a particular savings.. Jeanne Kane, a certified financial planner at JFL Total Wealth Management in Boonton, answers similar questions for this particular question:
“Try to understand how the investment can gain or fall in value. For example, in the second quarter of 2021, Apple achieved an annual revenue of 54% and earned $89.6 billion and earned a profit of $ 1.40 per share.. You can search for stocks, bonds and mutual funds and get answers to these questions.. Investments like Bitcoin should be held to the same standard. Where does Bitcoin get its value and why is it increasing? If your father can’t answer these questions for Bitcoin or any other investment, he shouldn’t be investing in it.”
Jeanne Kane specifically answers the question:
“Specific When he seems emotionally caught up in the excitement created around investments, it won’t be possible to thwart him.. Maybe you could suggest opening a separate account and putting $100,000 or less and investing in it and limit exposure. Logic often doesn’t work well with emotional responses, so the best thing you can do is really limit the downside.”
This recommendation Recent statements by famous billionaire Elon Musk and Bank of England Governor Andrew Bailey overlaps with. Both Musk and Bailey have warned that not all savings should be transferred to cryptocurrencies.
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