Should I buy Cryptocurrencies like Bitcoin? Is it time to buy low? Is Crypto for me?

Описание: ▬ Video Contents ▬
0:00 - Video Intro
0:42 - Channel Intro
1:15 - Is it time to invest in Cryptocurrency?
3:57 - How volatile is Crypto?
6:19 - The difference between Crypto and stocks
8:21 - The difference between Crypto and paper currencies
10:32 - Is Crypto a "bubble"?
15:43 - How to invest in Crypto with less risk
19:15 - Trading Crypto trusts or mutual funds
20:38 - If you are planning to buy, strategies to avoid losses
22:32 - Diversify based on your risk profile
24:17 - Invest with a Plan! Avoid emotional trading
25:05 - Conclusion

Should you invest in Cryptocurrency such as Bitcoin?

Certainly not if you don't know what you're getting in to! Do you understand Cryptocurrency & blockchain technology? Do you understand where cryptocurrencies get their value? If not, don't invest! Never invest in anything you don't understand!

Also, never invest more than you can lose! If you understand and believe in the underlying investment, be prepared to ride out wide swings in the market until it goes up again.

Stories about investors striking it rich by investing in Crypto when it was new make us all wonder if we should get into the game - and make no mistake: Crypto is a risky gambling game, with little to no oversight. If your unsophisticated grandma is talking about investing in Bitcoin, it's too late to get in on the ground floor.

There is no underlying asset for cryptocurrencies; they are valued at whatever the people think the value is, not based on assets, future profits, or growth potential, like stocks. This is not the same as national paper currencies, which are backed by the faith and credit of the government and supported by the productivity of the people.

To paraphrase Dr. Robert Johnson, a finance professor at Creighton University: Unlike a stock or a bond, crypto promises no cash flows to the holder. Crypto is essentially a big bubble, a good vehicle for someone who is truly a speculator – either a bull or a bear. The bubble is going to pop.
The future of Crypto is not guaranteed. They may implode and no longer exist in any meaningful sense in a few years. The entire cryptocurrency market seems to be driven by the "greater fool theory," as investors rely on new buyers to bid up the price.

Also according to Reddit (  / ):   "If Johnson is wrong and the cryptocurrency market doesn't fail, there still remains the question of which digital currencies will survive. With thousands of entrants in the market, and new offerings emerging, not all will last. Investors who want to speculate in this market should probably stick with the most well-known names, such as bitcoin, ethereum and litecoin. It's also wise to learn a bit about the market for each before investing."

A social media post or public comment could tank your Crypto investment by 40%, as we saw when Dogecoin fell hours after Elon Musk made a joke about it on SNL. Similar drops have happened for Bitcoin when Musk said Tesla would no longer accept it in payment for cars and when the China Banking Association warned its member banks about risks associated with digital currencies. Recently, the CEO of HSBC -- Europe's largest bank -- said they will not be launching a cryptocurrency trading desk or offering the digital coins as an investment to customers because they are too volatile and lack transparency.

If you still believe that digital currency is the way of the future and you want to invest, a recent CNBC article (https://www.cnbc.com/2021/05/24/how-t...) notes several options for indirect investment in crypto, which provides less risk & less volatility. You can invest in companies that hold bitcoin & cryptocurrency, or that accept it as payment, or that allow users to trade it on their platform, or that use blockchain technology, or that build the graphical processing units (GPUs) necessary to mine crypto. For example, Tesla (also a volatile stock in its own right), Square, Microsoft, IBM, Google, Amazon, Overstock, PayPal, Venmo, Riot Blockchain, Galaxy Digital...you can Google companies that fit the categories above and learn about them. Then, you can use your regular investment brokerage account to invest in their stock.

Or you can trade a Crypto fund or trust: Grayscale Bitcoin Trust and Osprey Bitcoin Trust are two option. All funds like this have management fees that should be researched and understood.

In summary: learn about crypto before you invest; invest only what you can lose; buy and hold for the long term! Avoid day trading. Use Crypto as a portion of your diversified portfolio. Don't invest out of FOMO, and don't invest emotionally. Make a solid plan that considers the balance, diversity, & risk tolerance of your entire investment portfolio and stick to your plan, regardless of emotions. Conservative investors with low risk tolerance should stay away from Crypto!