“There’s a process you have to go through to
determine if this new asset class is right for you.
What’s your plan? How old are you? What are
your goals? How tech-savvy are you? Do you
understand what it means to hold these assets
and have them not be insured? If something
happens to you, who in your family knows about
this stuff to retrieve it?” Ross says. “People don’t
do the right due diligence before dumping
money into something. I know that’s not the sexy
answer, but it’s the truth.”
IF YOU STILL WANT TO DABBLE IN
CRYPTO, START SMALL
Once you have a grasp on how it all works, you
can begin to think about allocating some of
your excess cash (after you pay your bills and
meet your monthly savings goals) toward crypto.
But keep your investment totals small and
manageable. Ross recommends investing up to
$500 or so. This way, even if you lose it all, it’s an
amount you specifically budgeted.
“If you invest in crypto, think of it as dead money.
Money you’ll never get back,” says Danny Lee,
a financial planner in Denver. “At the end of the
day, it’s going to be a speculative investment.”