Should you invest in Bitcoin? All need to know

The most important question ever asked by mankind. Alright, maybe not the most important.
But Bitcoin is the most debated investment of the last decade.
Some people see it as the future of money. Others dismiss it as pure speculation.

So should you invest? Let’s look at the pros and cons, and whether you should  invest.

The upside

Bitcoin has been the best-performing asset of the last ten years.
It has grown more than stocks, gold, real estate, and every other traditional investment.
Bitcoin has not been around for as long as traditional markets, but 10 years is a decent sample. It looks like it’s here to stay, not just a fad that will disappear.

It also has a hard cap of 21 million coins.
This fixed supply means governments cannot print more.
In an era where central banks create trillions out of thin air, owning Bitcoin can protect you against inflation.
You can sell your coins instantly if you need liquidity. No need to spend months putting it up for sale, like you would with a house. No huge fees either.

Unlike fiat money, it is decentralized. No single government or bank controls it.
For many investors, that independence is a hedge against political or financial instability.
If you live in a politically unstable country, Bitcoin may provide security during bad times.

The downside

The biggest risk is volatility.
Bitcoin has lost more than half its value multiple times over those last ten years. The stock and housing market have dropped as well, but not nearly as much as Bitcoin has.
Many people simply cannot handle the swings and start panic buying or selling their coins.
Bitcoin may be different to a traditional investment, but it should mostly be managed like one.

Government regulation is another risk.
Governments can restrict trading, add heavy taxes, or even ban crypto altogether.
You could say owning crypto is even more important in a country where the government has so much control over its citizens.
But owning coins is risky when they can be taken from you, or the exchanges can be banned.

Another risk is losing your coins. It’s happened to me years ago, and it can happen to you.
If you lose access to your wallet or send to the wrong address, your Bitcoin is gone forever.
Banks have protections in place. Crypto does not.

Speaking of scams, the crypto space is full of them.
Exchanges have been hacked, coins have collapsed, and fake projects have stolen billions.
You may be disciplined and careful, but the industry around Bitcoin still carries real dangers.

Anyone saying BTC is the greatest invention since the wheel or sliced bread is lying. There’s clear pros and cons to owning crypto currencies.

How you should invest

Whether you should invest in Bitcoin, or other crypto, depends on your personal situation.
It depends on how much money you have, what stage of your career you are in, and how much risk you are willing to take.

If you are considering crypto, focus on Bitcoin and Ethereum first.
These two coins have established themselves as the leaders in the space.
Venturing into smaller coins without deep knowledge almost guarantees that you will get scammed or lose money.

It is perfectly fine not to extract every possible bit of value in an area you do not fully understand.
Sometimes the smarter play is to keep things simple and avoid unnecessary risk.

If you are early in your career and have a bit of money saved up, you’re better off investing that money into your skills. So you can grow your income.

With a good amount of money saved up, investing in crypto makes more sense. You can handle short-term losses because you don’t need the money to feed yourself and your family.
You could invest somewhat aggressively, because you are far from your ultimate monetary goals and crypto has returned big profits in the last ten years.

If you’re close to retirement, highly risk-averse, have degenerate gambling tendencies or try to micro-manage investments rather than letting them do their thing, Bitcoin may not be for you.
Investing anywhere from 0-15% of your net worth in Bitcoin and/or Ethereum is the best move for many people.
Figure out what kind of investor you are and what your goals are.

I’ve lost track of the amount of poker players who’ve got 80%+ of their net worth stashed in crypto.
Not just Bitcoin, but also altcoins whose name they can barely spell.
I tell them they’re not poker players. They’re crypto investors.

Have you made mistakes investing in crypto?
I will create a plan for you that helps you make more money, and actually keep it.
Click the link below for a free consultation.