Volatility & Investing - Risk v. Reward | Stocks v. Bitcoin / Dogecoin

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The bigger the risk the greater the return, right?

Well, maybe...but maybe not.

Buying the latest "hot" stock or investment can be tempting - but these so called "hot" investments are making headlines for a reason. They are incredibly volatile, and volatility can really work against you as an investor. Just because an investment has soared to new heights then subsequently crashed, there is no guarantee that, that investment will return to its previous highs. It may, and it may not.

Remember, investments don't play by a set of rules. Rarely are markets predictable (at least in the sort term.) You may make the big bucks and get rich quick by investing in the latest headline making stock, or you may lose it all.

Cryptocurrency - namely Bitcoin and Dogecoin seem to be the names on everyones lips right now, they are the headline articles on the investment apps an even in the financial news. But does that mean that they are a good investment? Simply because people are talking about it, do that mean you should invest your hard earned money into it? Well that is really up to you decide. Before investing your money, make sure that you are doing your own research, not just following the talking heads on the news or even your social media feeds.

Could these volatile investments pay off big...certainly --- might they pan out to be just another fad. Who knows, only time will tell.

Volatility and risk is no guarantee of reward. You don't have to risk everything in order to make it.


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#personalfinance #investing #risk #crypto
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