AVID Chat #60: Jack's 2021 Cryptocurrency Experience

Have you ever wondered how a financial planner views cryptocurrency?

To learn more about this type of currency and investment trend, Jack took time to educate himself and experiment with his own portfolio in 2021. 

In an effort to continue providing knowledgeable advice to our clients (and to our followers!), this week's AVID Chat is a Q&A-style interview with Jack about his experience, and what investors might expect.

Outline:

0:57 Why Jack got involved in cryptocurrency

3:37 How he invested

8:25 Understanding cryptocurrency terminology and different ways to invest

11:28 How does cryptocurrency fluctuation work?

12:59 Jack’s take on cryptocurrency as an investment

14:20 How does Jack recommend investors get started if they’re interested in learning more about cryptocurrency?

19:20 Remember: cryptocurrency is highly speculative, but educating yourself on cryptocurrency may be wise as it becomes more and more common

At AVID Planning, we don’t currently offer cryptocurrency management as a service. However, we are always pushing to make sure our team is knowledgeable about financial questions that our clients have – and it’s not a secret that cryptocurrency has been growing in popularity in recent years.

The truth is, in Jack’s experience, that cryptocurrency is a bit like the wild west. There’s no true regulation, and it can be incredibly risky. However, investors would be wise to continue educating themselves on cryptocurrency, because at this point in time it’s impossible to tell whether or not it will be an increasingly popular investment vehicle for decades to come. 

This doesn’t mean that you have to go out and buy cryptocurrency immediately – far from it! In fact, our team recommends speaking with an advisor who is knowledgeable, and doing your own research from afar before deciding whether or not you want to get involved. 

We also recommend, as is the case with any highly speculative investment, to only invest a negligible percentage of your total portfolio if you choose to take the leap. This means less than 5% of your total investable assets should be used for speculative purposes. Essentially, ensure you’re not investing more than you’re willing to lose, especially if you have other financial goals you’re pursuing, like education savings, debt repayment, or retirement. 

Do you have questions about investing? Is cryptocurrency something you’ve considered, but aren’t sure how speculative investments fit into your portfolio? We’d be happy to speak with you. Click here to reach out: https://avidplanning.com/contact