A visual representation of digital currencies.
Yuriko Nakao | Getty Images
Even though it’s a highly volatile asset, cryptocurrency can help investors build wealth, especially if they invest in digital coins over the long-term.
It’s a portfolio play that’s gained traction in recent months and is catching up to stock trading as something that Americans are looking at for growing wealth. Some 13% of Americans have purchased or traded cryptocurrencies in the past year, according to a recent survey by NORC at the University of Chicago. In the same time period, 24% traded stocks, the study found.
Bitcoin has whipsawed lately, showcasing the volatile nature of many digital coins. On Friday, the asset fell to about $32,000 per coin, but rebounded to about $40,000 on Monday, the highest price it’s hit since June. On Tuesday, the cryptocurrency slumped again, trading down 5% around $37,000.
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That’s a big drop from the all-time high of about $63,000 hit in mid-April. Still, bitcoin is up roughly 30% year-to-date.
“It does have a place, especially for those that are younger,” said Tyrone Ross, CEO of Onramp Invest, a provider of “cryptoasset” management technology for financial advisors.
Part of a larger portfolio and plan
To be sure, investing in cryptocurrencies should be second to having a