Crypto has taken the world by storm over the past two years, but some cryptocurrencies have lost at least half their value in a matter of months. This most recent crash has caused many investors to second guess their positions.
Cryptocurrency is a tricky investment because it's still speculative, and there are valid points on both sides. Blockchain technology could revolutionize a variety of industries, and we're already seeing some real-world uses for it. But crypto could also be a regulatory nightmare, and nobody knows whether it will actually catch on with the public.
Whether you've already invested in crypto or are thinking about buying, it's normal to feel conflicted about it. But there's one question to ask yourself that can make it easier to decide whether this investment is right for you.
Which decision will you regret more?
Because crypto is a speculative investment, nobody can say whether it will succeed or not. But many experts believe that one of two things will happen: Either it will be a smashing success and change society as we know it, or it will crash and burn.
As you're thinking about whether to continue investing, then, ask yourself which of these scenarios you'll regret more. Will you regret losing money if you invest now and crypto ultimately fails? Or will you regret not investing when you had the chance if crypto succeeds?
If losing money is your biggest concern, that's perfectly understandable. That could mean that maybe this investment isn't the right fit for your portfolio.
But if you're willing to risk losing money to avoid missing out on a potentially lucrative investment, it may be worth buying now. Even if crypto does fail, at least you can say you gave it your best shot.
The key to successful investing
If you do decide to invest, it's important to have a strategy. Not all cryptocurrencies are created equal, and some are stronger investments than others. Doing your research, then, will be critical to deciding where to put your money.
Big names like Bitcoin (BTC 0.85%) and Ethereum (ETH 1.66%) are probably your safest bets, as they have the most traction in the sector and are the most likely to succeed over time. But there are plenty of smaller cryptocurrencies with big advantages, too.
CRYPTO: BTC
Key Data Points
Where you invest will depend largely on your tolerance for risk. Lesser-known cryptocurrencies could be more lucrative investments if they experience explosive growth, but they are often riskier, too.
As you're researching, look for cryptocurrencies that have some degree of real-world utility and a competitive advantage in the industry. Of course, even the strongest cryptocurrencies may not succeed. But the more research you can do, the better chance you have of seeing your investments thrive.
Choosing whether or not to invest in cryptocurrency is a highly personal decision. Not everyone will be comfortable with such a volatile investment, and that's OK. By considering your tolerance for risk and thinking about your potential regrets, it can be easier to decide whether crypto is a good fit for you.
