According to a recent GOBankingRates survey, about one-quarter of people invest in digital currencies. This alone makes cryptocurrencies worthy of investigation, as that represents a lot of money flowing into the asset class.
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Of course, it’s hard to avoid hearing about cryptocurrencies in the financial news these days, as Bitcoin prices are typically quoted continually throughout the day. Big winners, like Shiba Inu’s astonishing return in 2021, also garner headlines.
But should digital currencies really make up a part of your investment portfolio? Here are the reasons some experts believe so.
Diversification
The basic purpose behind investment diversification is to limit risk. As cryptocurrencies are extremely volatile, it pays to diversify that risk with more traditional investments like stocks and bonds. But the opposite is true as well.
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According to Michael Kelly, CFA with Switchback Financial, “I view (cryptocurrency) as a valid…
