![]() She is also an award recipient from the Society of Professional Journalists.The committee is also concerned that regulating consumer crypto trading as a financial service – as proposed by the Government – will create a ‘halo’ effect, leading consumers to believe this activity is safe and protected, when it is not. Her role has included being a mentor at Oxford University and Stanford University for student entrepreneurs and a media judge on various panels. She has interviewed some of the biggest personalities within the sector including Ray Dalio, Rick Rieder, and Sam Bankman-Fried. Additionally, she is the host of Block Street, an on-camera Business Insider feature that interviews key players about the crossroads between traditional and digital markets. On occasion, she profiles individuals who have reached financial freedom through alternative methods. She also profiles highly successful fund managers and traders about their strategies. She covers stocks, bonds, commodities, crypto, and real estate. Laila is an Investing Correspondent for the Markets division in New York. "It can be very exciting when it's going up, but it can crash very quickly, so don't risk more than you can afford to lose." "Cryptocurrency is much more like gambling than any other type of investing," said Bera. Her advice? When it comes to bitcoin, only invest your "fun money" - money you can afford to lose. Understand the riskĪlthough bitcoin's value reached an all-time high in the second week of January, it's important to understand its highly speculative and volatile nature.īera said more clients started asking about bitcoin when it reached a high of more than $17,000 in December of 2017, only to drop to less than $4,000 a few weeks later. They have financials to back up their value." 4. "But even individual stocks have a lot more longevity and history. "Even when we are talking about individual stocks, we don't want that to take up too much of a portfolio," said Bera. Since cryptocurrency is even riskier, she advises keeping it to 5%. In general, Bera thinks it's best to limit risky investments, including individual stocks, to just 10% of your portfolio. Limit your bitcoin investment to 5% of your portfolio Bera recommends making a monthly automatic contribution and letting the robo-advisor to do the rest. You could also use a robo-advisor like Betterment, which will manage your money based on your goals. ![]() ![]() If your retirement savings are on track and you want to invest in a taxable brokerage account, Bera recommends building a diversified portfolio that includes things like index funds and exchange-traded funds. But cryptocurrency is extremely volatile, so it's not the best bet if you want to build wealth that lasts. You probably already know that investing is a smart way to grow your money over time. ![]() If those bases are covered, only then should you consider bitcoin. This includes saving for retirement by maxing out your 401(k) or Roth IRA, making sure you pay off any high-interest credit card debt, having a plan to pay off your student loans and, finally, making sure you have a three-month emergency fund set aside. In general, she encourages anyone who's considering investing in cryptocurrencies to make sure the basics are covered first. Fund your financial goals firstīera works with many young people at her firm, Gen Y Planning - and lately, they've been asking more questions about bitcoin. If you've been thinking about buying bitcoin through your stock-trading app or brokerage, here are a few things to consider before spending your hard-earned cash on what could be a flash in the pan. In response to curious clients, she shares her motto: "Simple first, sexy later." "When people bring up Bitcoin to me, I think a lot of times what they really want is to get started in investing and they are wondering what they should invest in," said financial planner Sophia Bera. But many experts think their clients would be wise to sit this trend out. In 2020, 81% of financial advisors surveyed by Bitwise Asset Management said their clients had asked about cryptocurrencies. Those are big numbers - and you're not alone if they've piqued your interest in the cryptocurrency. By clicking ‘Sign up’, you agree to receive marketing emails from InsiderĪs well as other partner offers and accept ourīitcoin made headlines throughout 2020 as its value rose by 288% and hit an all-time high of $40,000 in early 2021. ![]()
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