Traders buying a cryptocurrency today need tomorrow\u2019s gains, not yesterday\u2019s. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. Stash101 is not an investment adviser and is distinct from Stash RIA. At Stash, we recommend holding no more than 2% of your overall portfolio in any one crypto in order to limit crypto-specific risks.<\/p>\n<\/p>\n

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• Investors are usually thinking in terms of years, so short-term price changes aren\u2019t that important.<\/li>\n
• Investing in Bitcoin (BTC 1.23%) and other cryptocurrencies isn’t right for everyone, but if you’ve decided that it should be part of your investment strategy, there’s a right and wrong way to go about it.<\/li>\n
• Morgan Self-Directed Investing account with qualifying new money.<\/li>\n
• Investors may purchase shares of BLOK on the secondary market and increase their exposure to Bitcoin.<\/li>\n
• Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided.<\/li>\n
• This beginner\u2019s guide will define cryptocurrency as an asset class and take you through the basics of investing in it.<\/li>\n
• If the value of Bitcoin sinks, you could get stuck with big losses.<\/li>\n<\/ul>\n

  This is considered a high-risk investment given the speculative and volatile nature. This technology also allows for secure payments between buyers and sellers \u2014 no bank or other third party is necessary, and you don\u2019t need to divulge any personal information. This doesn\u2019t necessarily mean your cryptocurrency investments are \u201csafe,\u201d though \u2014 there are still risks, like volatility, potential hackers, and even exchange collapse (more on that later). The are several ways to invest in cryptocurrency, so if you’re interested and can accept the risks involved, you have many choices. However, it cannot be stressed enough how volatile crypto prices are because other cryptocurrency investors are afraid of missing out on the next big price movements. These movements cause large price, unpredictable price swings that can take out your investments in a matter of minutes or hours.<\/p>\n<\/p>\n

  How is bitcoin\u2019s price determined?<\/h2>\n<\/p>\n

  If you’re thinking about buying Bitcoin or any cryptocurrency, there are a few ways to think about the risks and potential rewards. Bitcoin is a bet both on the cryptocurrency space itself and the specific technology behind Bitcoin. Both are relatively new and untested, and neither is guaranteed to reach the potential some of its proponents anticipate. There are many reasons why experts believe Bitcoin and other cryptos should only be a small percentage of any investor\u2019s portfolio. One reason is that although cryptocurrencies have been lucrative for some long-term investors, cryptocurrencies in general still suffer from extreme volatility. For example, crypto exchanges like Coinbase and eToro will allow you to link to your PayPal account as a payment processor to purchase crypto.<\/p>\n<\/p>\n