Cryptocurrencies are having a moment.
Youve probablyheard a thing or two about Bitcoin and Ethereum.
Namely, their prices seem to be skyrocketing (or plummeting, depending on the day).
Theres more to the story, and as the investing cliche goes: dont buy what you dont know.
So lets find out more.
What Is Cryptocurrency?
For that reason, its hard to counterfeit.
Bitcoin is one of the first cryptocurrencies to hit the scene.
The thing is, theres no central agency (like the government) that issues or regulates these cryptocurrencies.
Which is why its been such an attractive option for shady business activities,like money laundering.
So what about tokens like Bitcoin or Ethereum, which are popular, widely covered options?
(And that areactually used as currency.)
Are they smart investments?
Is Cryptocurrency a Good Investment?
Some people say investing is like playing the lottery.
Thats not entirely accurate, though.
Cryptocurrency, a volatile, unpredictable investment, falls into that category.
Seems like a good deal, right?
But the thing is, the price of these cryptocurrencies often swings from one extreme to another.
(Inone day in June, the price of Ethereum plummeted from $319 to $0.10!)
Not to mention, theres also the old investing adage, buy low and sell high.
If you bought Ethereum right now, youre buying high.
Most people have no clue how Bitcoin or Ethereum work, or understand how theyre challenging monetary theory.
Thats a dangerous formula for volatility and potential money loss, writer Sean Williams says.
The bottom line: get rich quick schemes rarely work out well.
It should be a long game, allowing you to gradually build wealth over time with much less risk.
Website Coinbase seems to be the most popular option for buying Ethereum, Bitcoin, or Litecoin.
Its also the easiest,according to Inc.coms Brian Evans.
These websites will also let you sell your coins when youre ready.
If you have extra cash to invest on hand, it might be an interesting experiment.
Over time, it all evened itself out.
Some short-term investors have much better luck; others have much worse luck.
The point is, you dont want to put most of your money to work this way.
Its not quite as sexy as cryptocurrency, but its probably a safer bet for your hard-earned cash.
