Is it safe to buy Bitcoin in 2024?

During the crypto frenzy of 2020 and 2021, many Americans bought crypto for the first time. The soaring prices created a

sense that the market could only go upward. Speculation was rife. Sadly, many retail investors lost money in the

subsequent crash, which saw Bitcoin lose around half its value in six months.

If you're wondering whether it will be safe to buy Bitcoin in 2024, the short answer is that cryptocurrency is a risky asset

class. It is still a relatively new and unregulated industry, and there is a lot we don't know about how it will unfold. Here

are some questions to consider:

Are you comfortable with the volatility? Bitcoin's price fluctuates dramatically. It gained over 300% in 2020, gained 

another 60% in 2021, only to lose 65% in 2022. It isn't uncommon for Bitcoin's price to move by 20% in a matter of days,

which can be difficult for some investors to stomach.

How do you plan to store your Bitcoin? If you don't want to move your Bitcoin to a crypto wallet, make sure you know

what might happen to your funds if the exchange you use fails. Cryptocurrency exchanges don't carry the same

protections as a bank or brokerage account.

How does crypto fit with the rest of your portfolio? There are many different investments to choose from, so try to make

sure crypto only makes up a small percentage of your portfolio. That way you'll benefit if Bitcoin goes to the moon, but

your wealth-building plans won't be destroyed if it doesn't succeed.

How do you think Bitcoin will perform long term? Short-term speculation rarely pays off, so try to understand Bitcoin's

long-term potential use cases. Some people argue that Bitcoin could become the native currency of the internet. Others

think it could take a portion of the global remittance market or become a currency for emerging markets. Critics believe

it has no inherent value at all.

Are you comfortable with crypto's regulatory situation? Most cryptocurrencies are currently viewed as commodities and

come under the purview of the CFTC. The SEC has brought charges against several top crypto exchanges this year,

making the case that many cryptos are actually unregistered securities. At the same time, at some point the government

is likely to introduce a regulatory framework for crypto. But right now there's a lot of noise and not a lot of certainty,

which some investors find concerning.

Speaking personally, Bitcoin and other cryptocurrencies continue to make up a small percentage of my wider

investments. However, I am concerned by the regulatory landscape and the questions about what goes on (or has gone

on) behind the scenes at various crypto platforms. Bitcoin's price may have recovered from the collapse of FTX, but for

me, the stain of the fraud and extreme mismanagement remains.