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Now the exchange has also taken the next big step of issuing its very own cryptocurrency: WLFI.
Trumps cryptocurrency is brand new and doesnt have any history to back it up.
Just because it has a familiar name attached to it, that doesnt mean it will perform well.
You should not invest in things because people are speculating that it could make it big.
Crypto has made huge gains for some, but its also caused huge losses, too.
Some people do make a lot of money in crypto.
But what worked for one person doesnt guarantee that the same thing will work for you.
That means that, theoretically at least, its value will be locked one-to-one with the U.S. dollar.
This is supposed to keep the extreme price swings of regular cryptocurrencies from happening.
But there are still big risks.
A stablecoin relies on World Liberty Financial to keep its value.
You have to trust that World Liberty Financial has enough cash reserves to back up every coin they issue.
Cryptocurrency is a highly speculative asset; it is not a prudent investment.
Cryptocurrency does not yield any income, and it has no intrinsic economic value.
Unfortunately, given cryptocurrencys incredibly volatile nature, properly timing a purchase and sale is hard to do.
Keep in mind that unlimited growth isnt possible.
There is a high potential you could be left holding worthless assets.
Traditional investments like bonds or index funds are slower to earn returns, but theyre far more predictable.
The huge price spikes can make it look like a way to double or triple your money overnight.
But thats more gambling than investment.
Real investing doesnt work that way.
Investing is a long-term play, said Schmitz.
Investing should be done with a long-term outlook in mind, always.
Cryptocurrency hasno long-term recordof being successful.
These funds track the performance of groups of companies on the stock market.
Instead of betting everything on a single asset, your risk is spread out.
Index funds generally grow steadily, and you benefit when the market as a whole does.
Theyre asafer and simpler wayto invest.
This isnt like buying shares in awell-diversified index fundwith a long track record.
Cryptocurrency can provide some diversification benefit to a portfolio comprised of stocks, bonds and cash, said Brock.
If youre thinking about investing in WLFI, just know that it could go to zero.
Thats the reality with any digital asset, especially one thats new.
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