Don't put all your bitcoins into one basket.
Bitcoin is up 900% from a year ago. With that crazy amount of growth, it sounds sexy and exciting. Who doesn't want to get rich quick? It's hard not to feel like you're missing out.
"You could be a millionaire in 6 months!" and "You could turn $100 into a retirement fortune!"
These are all things people trying to get you to invest in Bitcoin have said. In fact, three of my clients this week have called to ask about it. I'm not surprised.
Beware. It sounds exciting, but it can be dangerous.
What are You Missing Out on?
Instead of taking a large chunk of your money and investing it into one thing (i.e. Bitcoin), spread your investments across the whole market.
Good investing requires diversification.
This lowers your risk without having to sacrifice returns.
It's ok to have some fun money. If you follow the "Foundation First" principle, build an emergency fund, put away what you need to for retirement every year and do that consistently,
it's fine to take some money and go have fun with it.
Just make sure the amount of money you take, you're willing to lose. And remember: The real power is in diversified investing over time.
The power of compounding interest over time is incredible. It's not as exciting to make 7% or 8% over time, but it works.
And that's how you build true wealth.
Listen to The Full Show:
Hear Chris explain the danger behind jumping on the Bitcoin bandwagon. Listen in for how to grow true wealth and live out your dreams. (Listen in at 6:24).
"The power of long-term investing over time is like a miracle. It's incredible. People make fortunes, they make their retirements because of it. And yet, it's not doubling your money next year."
"What happens when the Bitcoin bubble bursts? You lose a lot of money."
"Don't take risks you don't need to take."