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Despite its growing popularity with mainstream investors, some financial advisors are still cautious.
Heres what they said.
Cryptocurrency markets often follow four-year cycles, so patience and the ability to ride out market fluctuations are key.
As for security, not all exchanges are created equal.
According to Azari, both options have their benefits.
Choose based on your comfort level and technical expertise.
Regulatory Uncertainty
Regulations provide extra security for investors, especially in the face of rising crypto scams.
They also highlight current tax rules.
But regulations are ever-changing and as far as crypto goes, theyre still relatively new.
However, there are important reasons for caution when considering crypto as part of your financial plan.
Shifts like these could lead to greater uncertainty that could impact the crypto market.
No Tangibility
Unliketraditional asset classeslike real estate or gold, crypto isnt tangible.
Its not something investors can hold and put a value on in the same way.
Many cryptocurrencies are speculative, without intrinsic value orclear use cases, said DeLonde.
A lack of understanding of this asset class is another.
For those who do want to invest, its simply best to proceed with caution.
This uncertainty drives both sharp rises and steep crashes.
While youre at it, only invest if youre in it for the long haul.
Like stocks, short-term investing tends to pan out much less often with crypto than long-term investing.
Avoid chasing short-term trends, said Azari.
The key to navigating crypto successfully is to remain focused on the bigger picture and invest with caution.
Its not for everyone, and its certainly not a get rich quick solution.
Always prioritize your broader financial goals and ensure crypto aligns with them, rather than dominating them.
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