Bitcoin (BTC) has the financial markets all up in arms with its recent skyrocketed jump to approximately $10,000 a coin! Experts are debating whether this is a real “valuation” of the coin, or just a reactive jump from the hype.
This surge in cryptocurrency awareness has been proported to be the “new gold rush”.
Before you hitch your buggy to this runaway train, do your RESEARCH about cryptocurrency and the blockchain technology. There are plenty of articles out there in the Google-sphere that can properly educate you on the topic. Reseach will help you understand that this new disruption to the economy space is still in its infancy stages with plenty of room to grow.
A special note to my fellow Boomers out there…
There are ways to invest in cryptocurrency using your 401(k) or IRA. Check out BITCOINIRA.COM. They share a boatload of information and are IRS compliant, which is important!
BITCOIN is the not the only game in town…there are hundreds upon hundreds of other cryptocurrencies on the market, and yes, it’s easy to overlook them when the God-father of all crypto is overshadowing its offspring. However, taking time to learn the market and its overall weight of volatility can save you time, and possibly money.
While I personally have investments in cryptocurrencies, the jury is still out. My investment has tripled in less than 16 months, which is pretty good, however, my concern is not the value of the coin, but the stability of the company. My focus is on keeping apprised of any major changes within the infrastructure of the company as that will impact the value of my investment.
HOW TO GET STARTED WITH CRYPTOCURRENCY
A few suggestions to those looking to invest in Bitcoin:
- Do your research on the company’s infrastructure, plans for expansion, and key vulnerabilities. Remember, cryptocurrency is a new market, and all the kinks have not been worked out. The history of Bitcoin shows there were several breaches where coins were evaporated into cyberspace, and millions of dollars lost to investors. Learn how they will avoid that travesty in the future.
- Start small. Invest a small amount. Well, you might be thinking, “how do I do that, when Bitcoin (BTC) is currently at approximately $10,000 per coin? A couple of options on this one: 1) Ask your brokerage firm about ETFs (Exchange Traded Funds) that has a focus on Bitcoin, or other cryptocurrencies. This lessens your initial investment amount, as well as provide diversity in the ETF just in case Bitcoin bites the dust, your entire investment is not lost. 2) You may want to consider BitCash (BCH), a peer-to-peer electronic cash alternative. Currently, shares are $1579.68 which is more like the price of gold, but more (as of this writing).
- Check out these two articles about cryptocurrency and investment strategies that can put you in the game.
An informed investor is a better investor!
Here’s to your remarkable life & legacy…
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