More and more people are asking about Bitcoin. If you haven’t heard of Bitcoin, it’s one type of Cryptocurrency.
The first question people ask is What is Bitcoin? This article provides a straightforward explanation.
Another question we get asked is “should I invest in it?”
For the vast majority of you…NO! There is too much risk involved, and it’s distracting you from your primary financial goals. This “opportunity” might pan out, but if you keep chasing these types of opportunities you will lose over time. The steady, disciplined, and diversified investor almost always wins the race!
For those whose liquid net worth (IRAs, 401ks, regular investment accounts) exceeds $2M, you could consider a small investment in something like this. I define small as less than 5% of your liquid net worth. That said, I highly recommend you consult with your financial advisor and someone who is knowledgeable about Bitcoin.
If you are considering an investment in Bitcoin or another Cryptocurrency, ask yourself “Am I willing to lose this money?” If you can answer this with a confident YES, then go for it! If not, there’s your answer.