With cryptocurrencies so much in the news, you might be wondering if you should invest in them. But “invest” may not be the right word – because cryptocurrencies, or “crypto” for short, may be more speculation than investment.
Why is this so? First of all, cryptocurrencies are subject to astonishing price swings – often within a matter of hours. This extreme volatility can quickly turn “winners” into “losers.”
Also, unlike the traditional financial markets, the crypto marketplace is largely unregulated. This lack of oversight has contributed to the growth of “scam” exchanges, crypto market manipulation, excessive trading fees and other predatory practices.
The cryptocurrency market is still relatively new, and it’s certainly possible that, in the future, crypto can become more of an investment and less of a speculation. In fact, Congress is actively considering ways to regulate the cryptocurrency market. But for now, you may want to approach crypto with caution.
This content was provided by Edward Jones for use by Daniel Pellerin, your Edward Jones financial advisor at 189 East Main Street Suite G, in Newport, (802) 334-6261.