Make Bitcoin part of your portfolio, not the entire thing.

December 27, 2013

I feel that for a lot of you users in /r/bitcoin this is your first foray into investing. You have made a good chunk of change, now take those assets and split them up. Use something like Vanguards website to determine your risk assessment. Since we love bitcoin here, you can split up your risky investments between bitcoin, and stocks while putting the rest in bonds. You could even just roll everything into a Vanguard ETF and make a target 10% compounding off of your assets.

Bitcoin is a currency, being traded like a commodity. It has excellent potential for growth, beyond 1K per BTC. Which makes it an excellent choice for young people willing to take a risk. The end goal of investment is always to be financially independent. Refer to /r/personalfinance for a good overview of what that really means, and how to allocate your funds. Max 401K contributions, and 6 month emergency fund.

At this point you cannot include bitcoin into a traditional 401K to gain tax benefit, but you all are not afraid of being creative. Just make sure the assets you leave in BTC is an amount you are willing to lose. A diverse portfolio always helps when there is a downturn.

Edit:

Compound interest will always keep you ahead of the block difficulty.

submitted by Bluemoo25
[link] [13 comments]

from Bitcoin http://www.reddit.com/r/Bitcoin/comments/1ttssz/make_bitcoin_part_of_your_portfolio_not_the/

Tags: , , , ,

Comments are closed.