As an educated investor, it’s good to have a basic understanding of what exactly cryptocurrency is and how it can impact your financial future.
If investing comes up in a conversation with a friend, relative, or coworker, there is one topic that will always be introduced. That hot topic is cryptocurrency which is currently wildly popular among many investors and maintains a spot in headlines every week. There are the stories of those who got rich overnight by investing in Dogecoin, and then those stories are balanced by those predicting the immediate downfall of Bitcoin.
Keeping on top of everything is a lot, as cryptocurrency is a very complicated concept and is even more complex in practice. As an educated investor, it’s good to have a basic understanding of what exactly cryptocurrency is and how it can impact your financial future.
Overall, cryptocurrency may be a currency that sticks around, as it’s already remained longer than many predicted and has gotten more and more popular. However, as it grows in popularity, there are more things to consider about its viability to individual investors and how it will continue to evolve as it becomes more regulated to try to keep it from becoming a prime source of illegal activity funding. While there is definitely potential for a huge profit, the wild volatility creating a high risk level makes it not the best option for those looking for long-term financial planning.
Syed Nishat, BFA, is a partner at Wall Street Alliance Group. He holds a bachelor’s degree in business administration from University of Nevada Reno. Syed holds the FINRA Series 7, FINRA Series 63 and FINRA Series 66 licenses, along with licenses for life, disability, and long-term care insurance. He also has been awarded the Behavioral Financial Advisor (BFA) designation.
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