What are the Motley Fool's views on crypto like Bitcoin, Dogecoin, and Ethereum? When I started using the Motley Fool’s premium services, I was thinking squarely of investments that I felt have long-term durability like Starbucks stock, tech sector stock, etc. and less about more volatile investment opportunities like commodities or cryptocurrency.
Motley Fool advice on crypto is basically “know your risks” and “have an exit strategy”, and I have found this to be the smartest advice across the board regardless of the financial instruments or investing strategies involved.
Motley Fool’s Views on Crytpo
The going advice is that yes, Bitcoin and other top-performing crypto might be worth looking into as an investment for some who are less risk-averse and who can afford to lose some investment funds. But just how much is Motley Fool advice buying into the Bitcoin craze in particular?
Smart investors do not dump large amounts of their funds into fads at the overall risk of the investment portfolio. That is why Motley Fool advises investors to consider using a limited amount of money (measured as a percentage of your investment money) to put into Bitcoin or other high-performing cryptocurrency.
Crypto Value Subject To Sudden Change
Remember, cryptocurrencies don’t carry identical value and the ups and downs of one currency does not guarantee future results. Or act as an indicator that other currencies might follow suit. They often do not.
Back to the Fool’s advice--just how much of a percentage should you consider putting into crypto? No more than ten percent according to Motley Fool advice in May of 2021. Motley Fool advice in this area also indicates investors should consider using Bitcoin more long term. Forget about “day trading” in cryptocurrency. At least that’s the Bitcoin gospel according to the Motley Fool.
Don’t Forget About Keys
And let’s not forget about one other important factor in using cryptocurrency as an investment--if you lose your crypto keys (physically or digitally) you have essentially lost your investment. The risk of physical loss or data loss is an x-factor not present in other types of investments. That is an issue, for some at least, that can rear its ugly head in unexpected ways.
And there’s one other thing important to mention when considering Bitcoin, Ethereum, or even Dogecoin as a buy-and-hold option; you’ll want to keep closer tabs on these investments due to the potential for volatility. Don’t buy and forget with Bitcoin if you have more than a little invested.
It's good to take Motley Fool advice about not allowing substantial portions of your investment funds to be tied up in high-risk investments. Lowering your risk for loss by limiting your Bitcoin investments (by a specific small percentage of your total investment fund) is a smart idea and can protect you from greater losses should you be taken by surprise one day by a sudden drop in cryptocurrency value.