With Bitcoin's dramatic rise, is it a good idea to put all your eggs in this launching basket?

Bitcoin again edged closer to $11k USD on the cryptocurrency market on news of CME and NASDAQ futures approval. JPMorgan announced that this lends Bitcoin a degree of legitimacy to new investors. A broader range of traders are entering the market, eager to take advantage of Bitcoin's rapid rise in value.

You might be tempted to go "all-in" on Bitcoin. Stories of optimistic Bitcoin buyers selling their homes, camping for the last year, and subsequently earning huge gains might motivate you to pour everything into this single basket. It's true - had you put $100 000 into Bitcoin about a year ago, you would now be sitting on a couple million dollars. It is pretty amazing when you think about it - and pretty tempting.

Having said that, it's extremely risky. It is possible - and some, such as John McAfee, suggest it is pretty much inevitable that Bitcoin will make tremendous gains in the near future. The chance of gaining 10 - 100X value on an investment in such short order is pretty provocative and hard to resist.

If you really want to jump in to the crypto market, set aside some money you can afford to lose for cryptocurrency. It is indeed possible that it will truly pay off. You might want to look into some of the better alt coins. I personally like Ethereum, Litecoin, Civic, and Vertcoin, and have kept my Bitcoin Cash and Bitcoin Gold from before the fork. But, do your own research and choose coins that are compelling and have a good use-case. Don't just trust one person's opinion on a blog.

But don't get yourself into trouble. Keep paying into your other investments - your real estate, your retirement savings, other savings, gold, silver, and so forth. These are all good hedges against a crash. But they are all risky, too. Real estate crashes, stock market crashes, and even fiat money crashes are all possible and have happened in the past. In fact, cryptocurrency may even contribute to a serious fall in stock values if investors turn to it for better returns on investment.

Most importantly, only spend what you can afford to lose on cryptocurrency. It is, indeed, risky. Enjoy the ride!

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sources:
https://objects.kaxmedia.com
https://cointelegraph.com/