The Penny Hoarder recently featured R Persichitte in an article discussing the recent drop in cryptocurrency and how to respond.
Cryptocurrency is a highly speculative investment which means extremely high risk and potentially high returns. The high returns only come into play if you successfully predict which investments will go up in value.
“Offhand, I can’t think of an investor that should have everything in speculative assets like crypto.” Persichitte says, “Instead, it can be a part of a balanced portfolio tailored to your risks.”
Like stocks, bonds, or any other asset, investors need to match their strategies with their goals. Crypto can be part of a balanced portfolio, but only if you understand the risk and how it can impact your goals.