Financial Focus Bitcoin: Investing or speculating? They follow a long-term strategy Real investors follow a long-term strategy based on their goals, risk tolerance and time horizon. Generally speaking, long- term investors don't do a lot of buying and selling, saving impact of market volatility on your portfolio. Many people have decided that bitcoin is the next big thing - and they are backing up their enthusiasm with dollars. Should you, too, consider putting money into bitcoin or other eryptocurrencies? First of all, keep in mind an essential piece of financial on fees and potential taxes. But this "buy and hold" advice: Don't invest in something you don't understand. approach doesn't mean investors put their portfolios on And bitcoin is not easily understandable. There's no physical bitcoin, nor is it backed by a bank or govern- ment. It's a digital currency, used for transactions on a de- appropriate for their needs. centralized network of computers. The markets demand for bitcoin largely determines its price, though other factors are also involved. And this price can vary widely. Since bitcoin was introduced in 2009, it has gone through periods of enor- with solid fundamentals, including strong management mous gains and precipitous declines. Its short history has teams, competitive products and services and business reminded market watchers of the bursting of the "dot. com" bubble in 2000 and the housing market bubble in bonds, they seek those with high credit ratings issued 2007. These results have raised the following question about purchasing bitcoin: Is it investing or speculating? There's a big difference between the two. Speculators engage in risky transactions with the hope of profiting from short-term price fluctuations in various financial vehicles. Investors, on the other hand, stick with these practices: Long-term investors reduce this risk by owning a variety of investments. While diversification cant guarantee profits or protect against all losses, it can help reduce the And here's one more difference between investors and speculators: track record. Investors put their money into companies that provide tangible goods and services, and these companies have historically grown with the overall economy. Stocks and bonds are established investment vehicles with well-defined and regulated markets. Conse- quently, investors can assume a certain degree of predict- autopilot. Instead, they review their portfolios at least once a year to make sure their investment mix is still They focus on quality. Long-term investors stay away from the flashier- and riskier financial instru- ments. Instead, these investors seek quality. When they're ability, though, of course, stock prices will always fluctu- considering stocks, for example, they look for companies ate in the short term and there are no guarantees against loss of principal. Cryptocurrencies, on the other hand, are relatively new, largely unpredictable and will likely face increased regulation in the future, with the ultimate risk being an outright ban by some governments. You work hard for your money so think carefully plans that bode well for the future. When they buy by the independent rating agencies. Focusing on quality doesn't yield quick results, but it can instill confidence in about how you can best put it to use to help you reach one's investment choices. They diversify their holdings. If a downturn in the financial markets affects one type of asset particularly hard, and your portfolio contains a high concentration of for use by your local Edward Jones Financial Advisor. that asset, your financial strategy could be jeopardized. your lifetime goals. This article was written by Edward Jones Edward Jones, Member SIPC Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS Pam Covington CFP" AAMS Edward Jones Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert Edward Jones Karen Rupert Financial Advisor 414 S. Scom Rd. Fort Wayne. IN 46814 Financial Advisor Financial Advisor Financial Advisor Financial Advisor 7030 Pointe inverness Way. Sute 126 Fort Wayne, IN 46804 432-3613 Making Sense of Investing Financial Advisor 14413 linois Rd Ste E Fort Wayne, IN 46814 Financial Advisor 7127 Homestead Rd, Suite C Fort Wayne. IN 46814 karenrupertedwardjones.com 263-4760 Making Sense of Investing Financial Advisor 01 Chestrut Hils Parkway Fort Wayne, IN 46814 7525 West Jetferson Bivd. Fort Wayne, IN 46804 6525 Constitution Dr. Fort Wayne. IN 40804 7329 West Jetferson Blvd Fort Wayne. IN 46804 625-5700 Making Sense of nvesting 432-0304 Making Sense of Investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of lnvesting Financial Focus Bitcoin: Investing or speculating? They follow a long-term strategy Real investors follow a long-term strategy based on their goals, risk tolerance and time horizon. Generally speaking, long- term investors don't do a lot of buying and selling, saving impact of market volatility on your portfolio. Many people have decided that bitcoin is the next big thing - and they are backing up their enthusiasm with dollars. Should you, too, consider putting money into bitcoin or other eryptocurrencies? First of all, keep in mind an essential piece of financial on fees and potential taxes. But this "buy and hold" advice: Don't invest in something you don't understand. approach doesn't mean investors put their portfolios on And bitcoin is not easily understandable. There's no physical bitcoin, nor is it backed by a bank or govern- ment. It's a digital currency, used for transactions on a de- appropriate for their needs. centralized network of computers. The markets demand for bitcoin largely determines its price, though other factors are also involved. And this price can vary widely. Since bitcoin was introduced in 2009, it has gone through periods of enor- with solid fundamentals, including strong management mous gains and precipitous declines. Its short history has teams, competitive products and services and business reminded market watchers of the bursting of the "dot. com" bubble in 2000 and the housing market bubble in bonds, they seek those with high credit ratings issued 2007. These results have raised the following question about purchasing bitcoin: Is it investing or speculating? There's a big difference between the two. Speculators engage in risky transactions with the hope of profiting from short-term price fluctuations in various financial vehicles. Investors, on the other hand, stick with these practices: Long-term investors reduce this risk by owning a variety of investments. While diversification cant guarantee profits or protect against all losses, it can help reduce the And here's one more difference between investors and speculators: track record. Investors put their money into companies that provide tangible goods and services, and these companies have historically grown with the overall economy. Stocks and bonds are established investment vehicles with well-defined and regulated markets. Conse- quently, investors can assume a certain degree of predict- autopilot. Instead, they review their portfolios at least once a year to make sure their investment mix is still They focus on quality. Long-term investors stay away from the flashier- and riskier financial instru- ments. Instead, these investors seek quality. When they're ability, though, of course, stock prices will always fluctu- considering stocks, for example, they look for companies ate in the short term and there are no guarantees against loss of principal. Cryptocurrencies, on the other hand, are relatively new, largely unpredictable and will likely face increased regulation in the future, with the ultimate risk being an outright ban by some governments. You work hard for your money so think carefully plans that bode well for the future. When they buy by the independent rating agencies. Focusing on quality doesn't yield quick results, but it can instill confidence in about how you can best put it to use to help you reach one's investment choices. They diversify their holdings. If a downturn in the financial markets affects one type of asset particularly hard, and your portfolio contains a high concentration of for use by your local Edward Jones Financial Advisor. that asset, your financial strategy could be jeopardized. your lifetime goals. This article was written by Edward Jones Edward Jones, Member SIPC Edward Jones Sean P. Asiala AAMS Edward Jones Michael C. Caley AAMS Pam Covington CFP" AAMS Edward Jones Edward Jones Tod Heisler AAMS Edward Jones Jason Korner CFP Edward Jones Quinn Nofziger Edward Jones Gwen Ruppert Edward Jones Karen Rupert Financial Advisor 414 S. Scom Rd. Fort Wayne. IN 46814 Financial Advisor Financial Advisor Financial Advisor Financial Advisor 7030 Pointe inverness Way. Sute 126 Fort Wayne, IN 46804 432-3613 Making Sense of Investing Financial Advisor 14413 linois Rd Ste E Fort Wayne, IN 46814 Financial Advisor 7127 Homestead Rd, Suite C Fort Wayne. IN 46814 karenrupertedwardjones.com 263-4760 Making Sense of Investing Financial Advisor 01 Chestrut Hils Parkway Fort Wayne, IN 46814 7525 West Jetferson Bivd. Fort Wayne, IN 46804 6525 Constitution Dr. Fort Wayne. IN 40804 7329 West Jetferson Blvd Fort Wayne. IN 46804 625-5700 Making Sense of nvesting 432-0304 Making Sense of Investing 478-8038 Making Sense of Investing 444-3134 Making Sense of Investing 399-5853 Making Sense of Investing 625-3524 Making Sense of lnvesting