Bitcoin is extremely volatile, but if you’re willing to take the risk, first make sure you understand what you’re investing in and have a crypto investment strategy. Therefore, investing in companies that use blockchain technologies has the same risks as investing in a new company. It can also mean using 401k retirement funds or other funds to invest in a qualified Bitcoin IRA. Most still consider bitcoin a risky investment and you should never invest more than you can afford to lose.
Currently, many investors consider Bitcoin to be digital gold, but it could also be used as a digital form of cash. With governments printing more money than ever before in light of the pandemic, investors are looking for alternative investments to protect against inflation. While the success of any cryptocurrency project is not assured, if a cryptocurrency project achieves its goals, early investors could receive a great reward in the long run. Bitcoin’s overwhelming performance as a currency and investment has attracted traditional and institutional investors alike.
The FCA has also warned investors to be wary of companies that promise high returns on cryptocurrencies. Ether is the native currency of the Ethereum platform and can be purchased by investors who wish to gain exposure from the portfolio to Ethereum. Investors optimistic about the long-term potential of the Ethereum platform can directly benefit from owning Ether. Amazon isn’t the only tech giant branching out into cryptocurrencies; rumors are circulating that Apple will use some of its large cash reserves to invest in bitcoin.
