Cryptocurrency is a trend that investors, companies, and brands can't ignore. The future of digital currency is highly uncertain, with some seeing potential and others seeing only risk. Professor Grundfest is skeptical, but admits that there are certain applications where cryptocurrency is a viable solution. If you don't want to take a chance of losing money when buying on an exchange, you shouldn't put it in a cryptocurrency fund either.
You can add cryptocurrencies to your portfolio directly from the same brokerage that you already have a retirement account or other traditional investment account with. Experts suggest keeping your cryptocurrency investments at less than 5% of your portfolio to start with. New crypto developments, such as decentralized finance and decentralized autonomous organizations, are likely to be the areas of greatest growth for cryptocurrencies. The more accessible cryptocurrency assets are within traditional investment products, the more Americans could buy and influence the cryptocurrency market.
However, cryptocurrency prices are volatile, so financial experts recommend investing only what you can afford to lose and never at the expense of fundamental objectives such as emergency savings and high-interest debt repayment. By tracking futures prices instead of bitcoin itself, experts say, the ProShares ETF could be too risky for novice traders.