Many of the people who are interested in potentially investing in Bitcoin, the digital coins that can act both as currency and investment property all at once, are not those who would traditionally play the stock market, buy bonds, get involved in real estate, and so on. These aren’t the types who are really interested in anything like that, perhaps because they are suspicious of that world. Yet by the same token, those same investing neophytes have found something in Bitcoin that speaks to them. Perhaps it’s the idea of taking control of their financial fortunes without needing banks or credit cards to do so. As a result, it’s understandable if some of those people want to make Bitcoin the only part of their portfolio.
If you are one of those people, and you wish to make Bitcoin the only game in town in terms of your investment portfolio, it could create some interesting side effects. Perhaps you would be better off, as a novice, putting your trust in a trading program, such as Bitcoin Trader, which concentrates on the assets you prefer. As for making Bitcoin your only investment, there is a number of different reasons why it might work for you, as well as some compelling possibilities that should make you consider rethinking your plan.
1. Set It and Forget It
If you’ve ever played Fantasy Football, you know what a pain it is when you have two quarterbacks on your team who are just OK and you have to choose between them each week. You’d probably rather have a stud at quarterback whom you can just plug in every single week. So, it is with Bitcoin. If you have a bunch of different options, you might choose the wrong one. But having one takes that pressure off you completely.
2. Easy to Follow
If you are one who likes to keep track of your investment, you’ll find that just having a single item in your portfolio pretty much makes it an easy job. Many of us are busy with a lot going on in our lives, and, as such, might not have the ability to take on the task of watching prices rise and fall and trying to time the crypto market or any market for that matter.
3. No Diversification
There are only two circumstances where you should even consider making Bitcoin your only investment. First, if the income you are using to invest is either small or disposable, meaning your finances wouldn’t take too much of a hit if you lost it all. Second, if you are absolutely certain that Bitcoin will be a major part of the financial world, not just now, but into the future. Considering how it has faced pressure from banks and governments, you have to be a little bit of a gambler to believe with no doubt that it can sustain. If you can, go for it.
Having the only Bitcoin in your portfolio is definitely unorthodox. But Bitcoin is an unorthodox technology, so why not?