Cryptocurrency has been making waves in the investing world, and many investors may be wondering whether it’s time to jump on the crypto bandwagon.
While it’s true that some cryptocurrencies, such as Bitcoin (CRYPTO:BTC), have experienced phenomenal returns over the past few months, that doesn’t necessarily mean they’re a safe investment.
Cryptocurrency is highly speculative at this point, and nobody knows what kind of staying power it has. Although it could change the world, it could just as easily crash and burn. Right now, it’s too soon to tell what the future has in store for cryptocurrency.
In addition, crypto is famous for its volatility. Bitcoin lost roughly 80% of its value at one point, and since the beginning of the year, it has experienced a roller coaster of ups and downs. Not all investors have the stomach for that type of turbulence.
However, if you’re eager to invest in cryptocurrency but want to limit your risk, there’s another option: crypto stocks.
Cryptocurrency vs. crypto stocks
When most people think of investing in cryptocurrency, they think of investing directly in the currency itself. But it’s possible to invest in crypto