You might consider investing in crypto if:
- You’d like to add very high-risk to your portfolio: If you’ve already assessed your risk tolerance and are actively looking to add higher risk into your portfolio, crypto certainly fits the bill.
- You believe in the mission of crypto and blockchain: Maybe you believe in the positive aspects of crypto and blockchain technology, and perceive it as a form of ESG investing.
You may want to pass on crypto if:
- You’re risk-averse: Cryptocurrency is extremely risky, volatile and unpredictable. If that gives you more anxiety than excitement, it may not be a fit for your portfolio.
- It’s your first form of investing: To echo Varun Marneni, a certified financial planner with Atlanta’s CPC Advisors, it’s best to have $100,000 in safe investments first before you invest in crypto. Check out our article Safe Investments With High Returns.
- You’re feeling FOMO: Fear is not an investment strategy. FOMO shouldn’t be a motivator for buying crypto, or any investable asset for that matter. Besides, you don’t need crypto to get rich.