Is Bitcoin a safe investment for a family?

Published Thursday, Jul. 5, 2018, 3:30 pm Join AFP's 100,000+ followers on Facebook Purchase a subscription to AFP | Subscribe to AFP podcasts on iTunes News, press releases, letters to the editor: augustafreepress2@gmail.com Advertising inquiries: freepress@ntelos.net

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If you were one of the people who bought Bitcoin when it first arrived on the scene several years ago, you probably don’t need to be told about how profitable it became for early adopters. As for those who still haven’t joined the fray, you might be wondering if there is still time to make a good profit off the digital coins. Many people think there is still substantial room for Bitcoin to increase in value, but there is a vocal side that also thinks that the coins are ready for a crash since it lacks intrinsic value. While those sides line up and argue, you, the investor, need to know what course of action you should take. And the importance of that quest is magnified if you have a family depending on you.

It’s one thing to take a stab at buying some Bitcoin if you are on your own and can be a little bit riskier with your investments. But that risk can be a serious problem with a spouse and/or kids depending on you. For that reason, you must make sure to tread carefully where Bitcoin is concerned. Perhaps your best move would be to trust your Bitcoin exposure to some sort of trading robot in the manner of Bitcoin Code, which will do all the decision-making for you. When it comes to those with financial responsibilities to their family, making an investment in Bitcoin should only be done with the greatest of care and only after properly researching all the possibilities.

Diversification Situation

Perhaps the best way to utilize Bitcoin in your portfolio is if you use it to balance out other investments that you already have in play. For example, if you are filled with stocks from traditional financial institutions, it might be a good idea to dabble in Bitcoin. After all, Bitcoin backers are generally in opposition to the big banks and credit card companies, so the value of those assets tends to move in the inverse of Bitcoin.

Dipping Not Diving

Obviously, the financial situation of your family will play a large role in how much you expose yourself to Bitcoin as an investment. But it is never a good idea to put all your financial eggs in one basket, especially when the basket is as potentially full of holes as Bitcoin.

A Little At A Time

If you can limit your exposure to Bitcoin, you can possibly build up a solid amount of value in it. Then as the value rises, you can start to think about balancing out your portfolio. Again, striking a balance is key, since the potential that the bottom could fall out of Bitcoin is something you should protect against for your family’s sake.

These are some of the things you should be considering as you examine a Bitcoin investment. If you make a well-informed decision, your family’s finances will be the better for it.

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