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As a business person managing your personal portfolio, you do your best to keep up with the latest financial news. You’ve been hearing more about cryptocurrencies and asking yourself “Hmmm.” Of course, it’s not just bitcoin. There are now hundreds of cryptocurrencies, which are a type of digital currency, on the market. They’ve been publicized as a fast and inexpensive way to pay online, but many are now also being marketed as investment opportunities. But before you decide to purchase cryptocurrency as an investment, here are a few things to know:

  • Cryptocurrencies aren’t backed by a government or central bank. Unlike most traditional currencies, such as the dollar or yen, the value of a cryptocurrency is not tied to promises by a government or a central bank.
  • If you store your cryptocurrency online, you don’t have the same protections as a bank account. Holdings in online “wallets” are not insured by the government like U.S. bank deposits are.
  • A cryptocurrency’s value can change constantly and dramatically. An investment that may be worth thousands of dollars on Tuesday could be worth only hundreds on Wednesday. If the value goes down, there’s no guarantee it will rise again.
  • Nothing about cryptocurrencies makes them a foolproof investment. Just like with any investment opportunity, there are no guarantees.
  • No one can guarantee you’ll make money off your investment. Anyone who promises you a guaranteed return or profit is likely scamming you. Just because the cryptocurrency is well-known or has celebrities endorsing it doesn’t mean it’s a good investment.
  • Not all cryptocurrencies or the companies behind them are the same. Before you decide to invest in a cryptocurrency, look into the claims the company is making. Do an internet search with the name of the company and the cryptocurrency with words like review, scam, or complaint. Look through several pages of search results.

Read more about Investing Online.



Caitlin Schultz
February 26, 2018
Good stuff
March 02, 2018
Cryptocurrencies sound like an updated Ponzi scheme. The top layer of the pyramid will make tons of money off the bottom layers. Caveat emptor.
March 08, 2018
There seems to be many misconceptions about what cryptocurrency is. Overall, they are a way for start ups to get funding in a global economy for areas of development in the blockchain industry. Unfortunately, there are many bad actors that give this space a bad name. Entering this market requires doing your own research and not investing more than you can afford to lose. There is a need for some regulation, but hopefully not to the extent that is drives away innovation and creativity. My fear is that regulations will limit investing to only accredited investors and once again leave the working person out of investing in what is according to many "going to be as big as the creation of the internet.
May 22, 2018
wonderful Article..Thanks for this great article

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