According to a CNBC survey 2021, Invest in You polls more consumers are getting into cryptocurrencies, owing to how simple it has become to exchange digital assets.
CNBC survey 2021 finds 1 in 10 people is investing in crypto
Moreover, 10% of respondents polled claimed they own cryptocurrencies, making it the fourth most popular investment option behind real estate, stocks, mutual funds, and bonds.
According to the report, 65 percent of individuals who invested in cryptocurrencies did so within the last year. During the same time period, the values of several of the most popular cryptocurrencies have shown their usual volatility. Bitcoin, for example, soared to an all-time high of more than $63,000 in April, then plummeted before rallying to about $50,000 lately.
According to CNBC survey 2021, the top reasons for individuals who trade cryptocurrencies are that it’s simple to do so, it’s interesting to invest in, and it has the potential for rapid development in a short amount of time.
Ease of buying and selling crypto entices new investors
Those who indicate they invest in cryptocurrency make up a large portion of the survey respondents.
“There are a lot of things that make crypto very attractive; the biggest one is the opportunity to make a lot of money,” said Douglas Boneparth, a certified financial planner and president of Bone Fide Wealth in New York.
Education is key
Of course, investing in cryptocurrencies, like any other asset, comes with risk.
“The fact that you’re still putting risk on your money doesn’t change the fact that you’re still putting risk on your money,” Boneparth added.
According to Ben Weiss, co-founder, and CEO of CoinFlip, one of the leading bitcoin ATM firms in the United States, while crypto is gaining acceptance as an asset that can be included in a well-balanced portfolio, it is still unlike any other.
“Unlike banks and stock exchanges, there are virtually no fail-safes to protect you if you make a mistake,” he said.
“Cryptocurrencies give you the ability to be your own bank, which comes with the responsibility of safeguarding your investments.”
That means you’ll need to figure out what kind of crypto wallet you’ll use and how you’ll keep your passwords and another sensitive information safe in addition to comprehending the currency you want to buy.
Invest with caution, just as you would with any other asset
Once you’ve mastered the fundamentals of cryptocurrency, the next step is to ensure you know how to trade it in accordance with your long-term objectives. “At the end of the day, if you’re going to invest, treat it no different than you would the rest of your money,” said Boneparth. This includes knowing how it fits into your overall financial strategy, which you should develop if you don’t already have one, according to Boneparth.
According to the CNBC survey 2021, many new cryptocurrency investors are trading their digital coins frequently. Approximately a third of investors said they trade cryptocurrency on a monthly or weekly basis, and nearly a quarter said they do it every day.
How often do cryptocurrency investors buy and sell?
Those who indicate they invest in cryptocurrency make up a large portion of the survey respondents.
That may be too common, as financial experts generally encourage long-term asset purchases and holdings as a sound method to create wealth.
Furthermore, because many cryptocurrencies are volatile, buying and selling frequently might increase the risk of losing money on a bad trade or being faced with an unexpected tax bill at the end of the year.
“Don’t get it twisted when it comes to how fun and cool something is versus the real risks,” said Boneparth.
Source: CNBC
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