Seven Questions To Ask Before Investing In Cryptocurrency (

Forbes Finance Council

Successful accounting, financial planning & wealth management executives from Forbes Finance Council share trends and tips.


 Forbes Finance Council , 

The popularity of cryptocurrency is steadily on the rise, despite the market’s volatility in terms of costs and regulations. With the price of bitcoin consistently over $8,000 in recent weeks, cryptocurrency makes quite an appealing, albeit risky, investment.

So, how do you know if this is the right investment for you?
As a first-time investor in any cryptocurrency, you need to consider the volatility of the market as well as the possibility that you could lose everything you invest.

Conversely, you could hit it big as the currency continues to grow in acceptance, giving you every reason to gain. Below, seven members of Forbes Finance Council list the most important questions investors should ask themselves before deciding whether to invest in cryptocurrency for the first time. photos courtesy of Forbes Councils members.

Members share the questions to ask before buying cryptocurrency.

1. Is it a good fit for me?Ask yourself, "How does it fit into my overall financial planning goals?" If you’ve identified what you want to accomplish, you need to look at how investing in cryptocurrency fits as an investment choice. With such a short track record, it's hard to project what they could potentially do. I, personally, wouldn't take a risk on an untried investment for my retirement. - Justin Goodbread,Heritage Investors

2. Am I ready to lose my money?Cryptocurrencies are new and exciting and potentially life changing. But the fact is that 100% of the value of an investment could be instantly lost through devaluation or cyber crime. This is particularly terrifying for those using things like a bitcoin IRA to risk their retirement savings on cryptocurrencies. - Bryan Ellis, Self-Directed Investor Society

3. Do I like Vegas?If bonds are seniors and equities are middle aged, cryptocurrencies as an investment class were born yesterday. Market dynamics are changing weekly, as millions of new participants join in.

No one knows what coin issuers, regulators or even governments will decide to protect investors in the future. Investing in cryptocurrencies right now is like going to Vegas -- but not for the parties or shows. - Atish Davda, EquityZen

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    Francisco Gimeno - BC Analyst If anyone wants to start trading in #crypto or is already doing it, he or she should try to answer to the seven questions stated by the #forbesfinancecouncil. They are a god guide to consider planning. Remember #crypto is like any other financial investment, so we need research, thinking and never should one invest without fully understanding the topic.