3 Reasons I'm Still Not Ready to Buy Crypto

I still have my doubts about digital currencies.

There are different paths you can take as an investor on the road to growing wealth. And for some people, that path is centered on owning cryptocurrency.

A lot of people, in fact, have had great success investing in digital coins. But here's why I'm still not quite ready to dive in.

1. I don't need more volatility in my portfolio

Since the start of the year, my brokerage account balance has plunged substantially due to stock market volatility. I'm not panicking about that for a couple of reasons.

First, I don't have any near-term plans to liquidate any of my investments, and as long as I leave them intact, I won't officially lock in losses. Also, the stock market has a long history of recovering from downturns. And so I have to hope that this recent bout of turbulence is something that will eventually come to pass.

At the same time, though, I've already seen my fair share of losses on screen over the past few months (particularly over the past few weeks). The last thing I need right now is to put money into an investment that could easily be subject to even more volatility than stocks.

2. It doesn't align with my strategy

Since starting to invest, my strategy has always been to load up on quality stocks and hold them for as many years as possible. But I'm not sure crypto fits into that strategy.

For one thing, crypto is fairly new -- it's been around for less than 15 years. And so it's hard to say whether it has staying power given that it hasn't been around that long.

Also, I'm convinced that if crypto does not become a widely accepted form of payment, it will lose value and potentially end up being worth nothing at some point down the line. And I'm not the only person who thinks that way. A number of seasoned investors, including the great Warren Buffett, also feel strongly that crypto isn't a viable investment in the long run. And that's reason enough for me to stay away from it right now.

3. I don't fully understand it

As a general rule, it's not a good idea to put money into a business whose inner workings you don't understand. Now, this isn't to say that I don't understand crypto on a basic level. But I don't really understand why certain coins have gained so much value and why there's such strong demand for them.

On the other hand, when I look at the stocks I own, I can see why the companies behind them have been able to make money and why their shares have gained value over time. That makes those stocks a good fit and crypto a poor one for me.

Is crypto right for you?

You may decide to invest in crypto despite the risks involved. That's not necessarily a bad choice. But for now, I'm staying away from crypto because it's clearly just not the right place for my money.