Heading into the weekend, Bitcoin’s fall from grace had reversed and improved a smidge, with values rising by 3.47% to $30,344 by midday on Friday. But who knows if the digital coin will continue to rebound over the next three days or if it’ll have another relapse like it did last weekend.
Either way, the conundrum for investors continues – do they take a shot at buying cryptocurrency while prices are in the tank so they can ride it back up, or do they put the money towards something that’s proven to be dependable during periods of economic turbulence? Where should people who are anxious about cryptocurrency put their money instead?
To give readers a more objective view of their options, ConsumerAffairs reached out to Chris Barnes, chief product officer and managing director of the Financial Services Research division of Escalent, to ask what safer investments might be at this time.
Traditional investments are best for some
Barnes says the tried and true methods of investing tend to work out better for consumers in the long run, especially if they aren't flush with extra money with which to take chances.
“Traditional, methodical and boring investment strategies are the best way to grow a strong financial foundation,” Barnes suggests. “This is a reminder that investors should not invest in highly volatile asset classes with money they can’t afford to lose.”
Barnes says it may be wise to simply tight if someone is in the cryptocurrency game.
“A dip of this magnitude is the kind of ‘nauseating event’ that causes investors to get out at the wrong time, as well, further compounding the loss,” he said. “Ultimately, we continue to see bubbles attract investors who over-extend and get in late before getting out late, leaving them holding a lot less money than prior to their investment.”
For those who want to learn more about investing, visit ConsumerAffairs’ resource guide on investing here.