Are Cryptocurrencies Still a Good Investment?

While Bitcoin and other cryptocurrencies surged late last year and hit all-time highs, many are wondering if the pullback is temporary and trying to predict the next move. Although there has typically been extreme volatility in the cryptocurrency market to date, many companies and payment providers are still jumping in and utilizing the possible future currency. Despite the fact, digital currency replacing traditional monetary assets seems like an inevitable norm, there’s just not enough confidence in the sector to warrant all investors diving in without concern.

With other proven investment strategies in current uptrends, such as the housing market, it’s tough to risk your hard-earned assets in something as volatile as the cryptocurrency sector. Many real estate markets seem untouchable today; Just look at homes for sale in Dallas, one of the hottest markets in the country. Avenues for investment means such as the housing market seem tough to beat. However, investing all your funds into a single means of exposure may not prove to be all that wise either. So, should you take a chance on the cryptocurrency market to expand your portfolio?

The cryptocurrency sector is rapidly changing with new forms of digital currency entering the industry on a regular basis. While tracking every new addition can prove to be time-consuming, being up-to-date on the current trends and presences in the cryptocurrency market is well worth your time if you’re considering dipping your toes in. As with any investment, day-to-day monitoring news and expert forecasts are imperative in making the right investment decisions. Additionally, consulting with your financial advisor can help facilitate the decision to shift investments into this relatively foreign market.

Market trends are continually fluctuating when looked at over many years. Investments that you may have been terrified of touching a decade ago are now industry leaders. However, the opposite is also true of opportunities many dove into which turned out to be painful decisions. The key to a successful portfolio comes through balancing your high risks-high returns with low risk-low rewards. ETF’s tracking the S&P 500, for example, have been proven to reward their investors over long periods of time. Sticking with investment options which practically guarantee a return will likely mean minimal regret when it comes time to cash in on your venture. However, if you have a hunch or feeling in your gut which insists you dabble in a potential home run, you’ll beat yourself up forever if you missed the ship.

Too often volatile or risky investment ventures result in a substantial loss of capital. If you’re able to protect your capital, while investing some funds in a potentially perilous endeavor, consider your options. At the end of the day, you’re likely not going to beat yourself up over a portfolio built around investments with demonstrated returns. If you miss the breadwinner, on the other hand, you’ll probably never forgive yourself. The cryptocurrency market has, without a doubt, pulled back while it’s potential is genuinely analyzed amongst experts. With technology developing as fast as it is, it seems inevitable that a digital monetary age is upon us. Invest with intelligence, protect your wealth, and take a small chance here and there if you can sustain it.