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But is Ramsey always right?
He recently warned against investing in crypto.
Crypto is not a safe investment, hewrote on the Ramsey Solutions blog.
Clarity tends to attract institutional capital, potentially expanding market depth and fueling innovation.
For those who dont believe, I say look at the data.
Its down from that high in the past month.
The stock market has 100 years of data, Zheng said.
For crypto, you’re able to get 10 years of data.
Ten years is not long to study compared to 100 years, but the math is simple.
Thats average return, he said.
Its a boring portfolio, but for a lot of retirees, its okay.
If you knew that 10 years ago, its a no-brainer, he said.
Well, you’re able to ask yourself the same question about the stock market.
How do you know the next 100 years will be the same as the last 100 years?
But Id rather be open-minded, because [otherwise], you potentially could lose a big opportunity.
If you think about gold today, nobody is questioning that gold stores value, he said.
Government Backing
Potential policy changes under the incoming Trump administration could enhance Bitcoins role in trade.
Meanwhile, he pointed out, policy changes could also positively affect the alt-coin market.
But Which Coins?
With all this in mind, the question becomes, which cryptocurrencies make the best investments?
Zheng divided cryptocurrencies into three buckets, once again drawing parallels to the stock market.
The first bucket, in a class by itself, is Bitcoin.
It holds the majority of market share and is the original coin.
He placed well-respected altcoins like Ethereum and Solana in the second bucket.
These would be like Microsoft, which establishes the infrastructure for IT, Zheng said.
Xu expanded upon the analogy.
Referring to Dogecoin, specifically, Zheng said, Its a speculative investment.
Its clearly influenced by celebrities, and the population that owns it is smaller.
Whatever crypto you choose, the traditional caveats to investing still apply, experts warn.
Amore pro-crypto environmentdoesnt eliminate the need for due diligence, said Xu.
[D]ont overexpose yourself to a single asset.
Diversify and only invest what you’ve got the option to afford to lose.
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