But for a majority of investors, financial planners are hesitant to advise putting a large chunk of a portfolio into bitcoin. Don't get caught up in the trend Many financial advisors get questions about bitcoin from investors that don't know a lot about the cryptocurrency and have just heard about it in the news.
How to use Bitcoin Inform yourself Bitcoin is different than what you know and use every day.
It's best to keep your goals in mind before get bitcoin now money into a fad investment, which could be something like bitcoin, a commodity like gold or the latest hot stock that's taking off. That includes understanding your net worth, living expenses and credit score, said Ma.
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From there, he recommends assessing where you are with other prerequisites to investing — do you have an emergency fund, are you paying down debt, contributing to retirement and on track for other financial goals?
Bitcoin produces no earnings, it pays no dividends, it pays no interest, so it's not really an investment in the traditional sense.
David Oransky founder of Laminar Wealth "What does your portfolio need to do to be able achieve your short- and long-term goals and for you to be able to lead your rich life?
Before putting money into bitcoin, it's important to do your research and understand as much as you can about the asset class.
get bitcoin now We should have investment decisions driven by things that we can control versus having it driven by emotion or feeling towards certain investments Anjali Jariwala founder, Fit Advisors "It's very different than investing in stocks, where you're investing in the future earnings of the company that produces goods and services. Use play money Once you've done your research and know you want to invest, financial advisors say that bitcoin shouldn't be a major part of your portfolio.
If you do want to have a bit of play get bitcoin now in your investment account, make sure it's an amount you're comfortable with going to zero, said Oransky.