However, I'm not here to tell you not to try it under any circumstances. on the contrary.
Take a look at Aadi Gujral's journey. Aadi, the 17-year-old founder of the Financial Education Foundation, found his way into cryptocurrency in the early days of the Covid-19 pandemic. He bought bitcoins and then joined the hype by dealing in other currencies and mining coins.
"There were times when it was incredibly rewarding and I regretted every choice I made," Aadi said. "With that volatility, my money would probably be safer and better invested in a stock index fund."
But can you learn more than a boring basket of the 500 largest US stocks? Do you have a better idea of your own risk tolerance? Be a better teacher to others your age. No and no.
Espinal, who teaches teachers about cryptocurrency and is the author of Watch Your Money, worries about teenagers putting all their savings into cryptocurrency and losing it all.
"They can leave with a bad taste in their mouth and put their money in a savings account because they don't want to experience that feeling again," he said. "It can discourage them from investing, which is a huge wealth-building opportunity, especially for people of color."
Espinal is right to be concerned, and since the 2008 financial crisis, many young people have stayed away from stocks for years after seeing their parents' pension balances suffer huge losses. Avoiding them during a violent bull market was a bad decision.
However, only a few cryptocurrency holders are currently affected. According to a Pew study, only 3 percent of them say their activities have a big impact on their finances.
The situation may change suddenly and without warning. However, all this means is that you shouldn't invest more money in cryptocurrency than you can afford to lose.
For Dr. Bernstein, whose oldest grandson is 10 years old and will soon be ready to absorb his wisdom, the biggest mistake cryptocurrency enthusiasts make is thinking that owning cryptocurrency is a real investment. He said that investments either generate income (as in a company in which you own shares) or generate income (when a company pays a dividend on its stock). No crypto if you don't sell it for profit.
You can think about your cryptocurrency ownership for months or years, like the hours spent at the theater or a concert, spending only what you think is worth the enlightenment or enjoyment you get.
But don't discount people like Dr. Bernstein. "That's the whole point of the old one," he said. “Older people don't invest as much in cryptocurrency as younger people, not because they don't like it, but because they've seen the movie before and usually know how it ends. New York Times