If you're looking for a bit more diversity in your portfolio, Bitcoin may be a good choice. Bitcoin and other cryptocurrencies provide alternatives to more common assets.
2. Stocks are likely to be the bulk of any portfolio for most
people.
"Stocks should be the main focus of most portfolios," Stein
said. You can come up with a value based on profits, and it's
a more stable investment for this reason."
Also, Stein said it's reasonable to expect that, even with
some short-term volatility, most companies will survive and,
therefore, provide stability. A broad-based index fund or
exchange-traded fund (ETF) made up of stocks is likely to
perform well in the long run.
Who Is a Good Fit for Stocks?
3. If you're looking for a bit more diversity in your portfolio, Bitcoin may be a good
choice. Bitcoin and other cryptocurrencies provide alternatives to more
common assets.
Bitcoin is useful if you want to hold assets that aren't denominated in dollars or
other currencies. "It's a way to keep some assets away from the dollar."
Stein and Chisholm said that even if Bitcoin is a good fit for your portfolio, you
probably shouldn't make it the main focus of your investment plan. It mostly
depends on how much risk you can tolerate and if you're comfortable losing
that amount.
"If you like the math behind (Bitcoin), then imagine that it could go to 0 or up
twentyfold," Chisholm said. What percentage of your portfolio are you willing to
lose? You should limit it to 1 to 5% of your portfolio, depending on your risk
tolerance."
Who Is a Good Fit for Bitcoin?