Should Women Invest In Crypto?
You are looking for advice regarding if it is wise for women to try investing in cryptocurrencies!
I personally am choosing not to invest into the crypto market right now. However, in this article I will dive into three specific reasons why I think women should (and should not) consider investing in cryptocurrencies and give you pointers to think more about investing in crypto.
Whether it is Bitcoin, Dogecoin, Litecoin, or any of the tons of other cryptocurrencies, you’re likely hearing of stories of countless people online posting about becoming millionaires.
Before we go into the reasons women should understand investing in cryptocurrencies, it is important to recognize the investing in crypto is very unknown and it’s very new.
Additionally, it is very important that you do a bit of research on your own before throwing your money into this opportunity!
These are the 3 reasons why women should reconsider investing in cryptocurrency:
- Cryptocurrency is not stock investing
- It is against proven plans for early retirement
- Investing in cryptocurrency is not guaranteed
(Pssst: Learn all about cryptocurrencies, along with everything about investing in this fun workbook for women, here!)
Stock Investing vs Cryptocurrency
In the Free Life Workbook for women, it thoroughly discussed cryptocurrencies and how it fits in with “classic” investing. If you are interested more in the resource, it is a really awesome tool for any woman who are trying to achieve debt freedom or financial freedom! If you don’t already have a good foundational knowledge about the stock market, go check it out!
Now, we need to first go over the differences between investing in the stock market and investing in cryptocurrency.
First, it is important to note that cryptocurrency is just a tool for buying. It is essentially an alternative for money, which is the purpose behind it!
However, people are buying the cryptocurrencies and the value of cryptocurrency goes up and goes down. If you buy a lot of the cryptocurrency at a low price and then the price of the crypto goes up, you could sell your cryptocurrency for more money than you put in originally!
1. Cryptocurrency Is Not Stock Investing
The first reason why I am not currently going to be investing in cryptocurrencies is because it is not considered an investment that we all recognize.
Right now, it essentially is gambling. Big money gurus like Dave Ramsey have said this many times. This form of investing is considered unstable and is very unknown! (Although this will change as time goes on!)
No one knows what the future will hold! Unfortunately, many people are also trying to manipulate the market.
I always advocate to do a lot of research prior to investing – in anything. The recent hype of cryptocurrencies has many people buying, but not knowing what they are buying into!
If there is not a proven record of 1 year, 5 years, or even 20 years, the method becomes a gamble.
Now, I do believe that one day we will be on digital currency. However, there is no way to know which cryptocurrency will rise best in price. With the thousands of digital currencies that are coming on to the market, it does not seem to be a safe time to be judging the future.
2. Investing In Crypto is Not In Proven Plans
Referencing back to the Free Life Workbook, this guide shows you a path to achieving financial goals!
There are many proven plans out there that have helped countless women pay off debt, earn more income, and create their financial dreams! However, these plans don’t have cryptocurrencies as part of the process.
Now, I understand the argument that investing in cryptocurrency may be a great idea due to the fact that crypto may be used heavily in the future. I also understand that this investing method may be part of future plans for early retirement, in some way.
Yet, I have a plan to retire in my 30’s. Sounds crazy, but it is more realistic than what many think! If you follow along on my Instagram or throughout this website, you know that this relates to using rental property investments and my side hustles. It’s a plan that is based on other proven methods for early retirement.
Unfortunately, investing in cryptocurrency is not part of this plan. So many people, it still is very confusing and I personally have no way to judge in the future how much money I could earn from it!
3. Investing In Cryptocurrency Is Not Guaranteed
I need to start with a very important statement: No investment is absolutely guaranteed!
The concept of gambling is simple. There is a chance that if you put money in, you could potentially get more money out. The money could go up or down, if we are talking about the stock market.
For me, I can at least know that if I put money into, say, index funds into a 401(k) or Roth IRA, that the funds will grow as time goes on.
However, is there a guarantee with cryptocurrency? Not as of now!
Now, what I will say is that if I have friends that invest in crypto and make millions, then, great! However, this type of investment is not part of my plan for achieving F.I.R.E. (financial independence retire early).
Additionally, investing in cryptocurrency is still a short-term investing strategy! Most people in the F.I.R.E. community advocate for long-term investing rather than short-term strategies.
If you see your friends buying and selling cryptocurrencies, without the plan to hold on and wait to sell later on, then they may not have the same type of foundational financial goals as you do regarding your plan!
Do keep watch, however, for the individuals who earn big now, but spend it all. We have all seen this with sports players and lottery winners. This may be a great time to educate friends and family about long-term financial growth!
Summary
As a woman, I plan on reconsidering buying cryptocurrency in the future!
However, at this time, few women are even considering investing money into crypto, compared to men! It is a unique opportunity that may be a great investment or a terrible choice. It’s a gamble!
No matter what path you choose, be sure to do your due diligence and research! Check out forums, learn terminology, and learn everything you can before putting your hard-earned money into something that does not have a guarantee!