The world is abuzz with talk of a new way to buy, sell, and earn money called cryptocurrency. It is a new form of currency not tied to any government or country and not dependent on any tangible like gold or silver. Many investors find it a confusing concept that seems to produce more questions than answers the deeper they dive. Because the new currency is part tech and part finance, it’s the perfect topic for David Walsh Bronxville, a New York entrepreneur, to address. Here are the five things Walsh wants every investor to know about cryptocurrency.
The cryptocurrency you purchase will be a completely virtual product. Typically, it’s kept as data in a digital wallet accessible by an app. While that sounds strange, most of your traditional fiat currency functions that way too nowadays.
Cryptocurrency is legal in the United States and other countries, although it isn’t universally accepted for purchases yet. Some investors are scared away by the fact that cryptocurrency has a reputation for being used for illegal purposes. However, the same could be said for cash, but that doesn’t mean that all transactions with the currency are illicit. In fact, major cities around the globe pride themselves on being hotspots for the widespread acceptance of the new way to pay.
Not everything that’s popular is necessarily right for you, but cryptocurrencies burgeoning popularity indicates a widespread agreement on its legitimacy. As more and more investors and companies get on board, cryptocurrency increasingly becomes more trusted and therefore more popular.
Bronxville’s David Walsh is no stranger to risk, but he warns potential investors that cryptocurrency is considered a speculative product rather than a safe investment. The cryptocurrency market continues to be volatile in a way that’s concerning for risk-averse investors. If you want to put your money into something with a steady, solid return, cryptocurrency may not be right for you at this time.
Of course, a higher risk also comes with higher rewards with the crypto craze. Many investors are excited by the significant gains that cryptocurrencies have experienced in the past. While past performance is never a guarantee, it is a factor many investors look for when choosing their next enterprise. That goes for cryptocurrency investing as well.
Now that you know a little more about cryptocurrency, you may be wondering it is right for your own investment portfolio. That’s a question only you know the answer to, and you always should consult a professional financial advisor before making any investments in cryptocurrencies. Cash in on the crypto craze today if you can handle the risk and it fits your investor portfolio.