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We asked Matt how someone new to investing can get started with cryptocurrency. Matt explains that strict guide rails are critical to cryptocurrency. He stresses don’t overdo it because cryptocurrency is a highly volatile investment. Even a small amount of crypto can have a dramatic impact on a portfolio. Second, never put all the proverbial eggs in one basket. Matt suggests that an appropriate crypto index fund or even spreading the investment among the top-performing assets may be right for certain investors. Finally, it matters who you partner with within the crypto space.
At Intelligent Investing, we believe in Diversification– the spreading of risk and reward across various factors and asset classes. Matt highlighted several risks with investing in cryptocurrency and reasons why it should be a very small minority of your portfolio if you decide to include it in your portfolio.
This podcast is not a recommendation to buy or not to buy cryptocurrency. Before you ever invest in anything, you should perform lots of due diligence and research, especially if the investment is relatively new. You should also consider how investing impacts your overall risk and financial plan. Remember, if you never own enough of any one thing to make a killing in it, then you probably won’t have to worry about owning so much of that thing, that you get killed by it.
Matt Hougan Bio
Matt Hougan is one of the world’s leading experts on crypto, ETFs, and financial technology. He is Global Head of Research for Bitwise Asset Management, creator of the world’s first cryptocurrency index fund. Hougan is also Chairman of Inside ETFs, the world’s largest ETF conference. He was previously CEO of ETF.com, where he helped build the world’s first ETF data and analytics system. Hougan is co-author of the CFA Institute’s Monograph on ETFs. He’s also a crypto columnist for Forbes, and a three-time member of the Barron’s ETF Roundtable. For more resources from Matt Hougan click here.