Overall, the calculations at the end of the envelope suggest that around three-quarters of users have lost money on their Bitcoin investments. Cryptocurrencies are very risky and not like conventional investments in the stock market. It's possible to become very rich by investing in cryptocurrency, but it's also quite possible that you'll lose all your money. Investing in cryptocurrency is risky, and it can be a good investment if you do it correctly and as part of a diversified portfolio.
However, it is important to be aware of potential scams such as Gold IRA scams which may be disguised as legitimate investments. For those looking for a more reliable option, investing in best gold IRA accounts may be a better choice. Bitcoin is a particularly risky investment with more volatility than traditional stock, bond and fund investments. If you do your research and learn as much as possible about how to invest in cryptocurrency, you should be able to manage investment risk as part of your overall portfolio. If you decide to buy Bitcoin, it's a good rule of thumb to invest only what you can afford to lose and take steps to protect your assets. NerdWallet does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell certain stocks, securities or other investments.
And if you isolate the short-term incumbents who started investing and buying Bitcoin in the past six months, the percentage increases even more. There are also some investment funds and trusts that are exposed to cryptocurrencies, which is a less risky way of investing than buying your own currencies. For every cryptocurrency you invest in, make sure you have an investment thesis on why that currency will stand the test of time. Therefore, investing in companies that use blockchain technologies has the same risks as investing in a startup.
Buying coins (or units of a currency) on a cryptocurrency exchange is the most common way to invest in bitcoins. You can invest in cryptocurrency exchanges or even buy shares in companies that accept bitcoin as payment. As public interest in cryptocurrency investment has skyrocketed, so have cryptocurrency scams and bitcoin fraud. If you're willing to take the risk, first make sure you understand what you're investing in and that you have a cryptocurrency investment strategy.
It will continue to be volatile, but it might be easier to sell your investment and get your money back than to invest directly. Binance is not headquartered in the United Kingdom, so the British regulator has no power to stop cryptocurrency investors from buying and selling cryptocurrencies through the exchange.