Understanding Cryptocurrency: Essential Insights and Investment Strategies
A comprehensive introduction to cryptocurrency. Learn how to set up an account, determine your investment amount, and much more.
Many people have been curious about cryptocurrency recently. What exactly is it? Is it a safe investment? How do you get started, and how much should you consider investing? Navigating new asset classes can feel overwhelming, especially after the uncertainties we've faced in the market and economy lately. Those who might have thought about investing in crypto two years ago are now hesitating, wondering, “Is this the right time?”
We aim to clarify your doubts in this week's discussion. Here are some key statistics for perspective:
- Bitcoin's value surged by 195,500% from 2012 to January 2022.
- The cryptocurrency market cap is currently at $2.05 trillion, making it the 8th largest economy worldwide.
- Daily trading volume for cryptocurrencies averages around $91 billion.
- Venture funding for blockchain technology reached $21.4 billion in 2021, a big jump from $3.6 billion in 2020.
- Notably, 55% of the top 100 banks have invested in blockchain technology.
Even the most cautious investors are taking notice of these figures.
To help us grasp the significance behind these numbers, we welcome Bill Ullman, Founder of Daily FinQ, a financial literacy app, and CEO of Water Street Advisors. Bill also chairs the Advisory Board of “Jewel,” Bermuda’s first licensed cryptocurrency bank.
Tune in as Bill explains cryptocurrency for those still unsure about this asset class. He'll clarify concepts around familiar names like Bitcoin, Ethereum, Tether, Solana, and Coinbase. Bill addresses a common concern: Is it too late to invest? Do you need to have bought Bitcoin a decade ago?
With cryptocurrencies now included in some 401(k) plans (yes, it's true), we discuss how to view it as a legitimate investment class and its role in your portfolio. We’ll also break down how much you might consider investing in crypto and what it means to conduct thorough research while monitoring market trends. Plus, we’ll confront the fears surrounding crypto — is it the intangible nature of the asset, or worries about hacking and potential losses?
If you're set to invest in crypto, Jean and Bill share actionable steps to take and what being invested in this asset class entails. You can buy crypto directly, invest in stocks of companies servicing the industry, or purchase shares of popular trading platforms like Coinbase — the possibilities are vast.
In our Mailbag section, we hear from a listener who found their child's