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4 things to do before you invest a single dollar in bitcoin, according to a financial planner
Before buying bitcoin, you should max out your 401(k), pay down debts, and consider a diversified investment portfolio.
By Laila Maidan
Bitcoin made headlines throughout 2020 as its value rose by 288% and hit an all-time high of $40,000 in early 2021. Those are big numbers — and you’re not alone if they’ve piqued your interest in the cryptocurrency.
In 2020, 81% of financial advisors surveyed by Bitwise Asset Management said their clients had asked about cryptocurrencies. But many experts think their clients would be wise to sit this trend out.
“When people bring up Bitcoin to me, I think a lot of times what they really want is to get started in investing and they are wondering what they should invest in,” said financial planner Sophia Bera. In response to curious clients, she shares her motto: “Simple first, sexy later.”
If you’ve been thinking about buying bitcoin through your stock-trading app or brokerage, here are a few things to consider before spending your hard-earned cash on what could be a flash in the pan.
