Your choices for how to put your money to work are expanding all the time, but they can all be broken down into one of three primary buckets according to their levels of security, income, and potential for expansion. These choices include the aims of each potential investor as well. Although the investor might have more than one of these goals, and very possibly might have all three of them, the accomplishment of one of these goals will come at the expense of the others if they are achieved. Finding a happy medium between these three deserving objectives should be the primary objective of any individual investor who is going to be successful.

If you want to make sure that you don’t lose any of your initial investment, which might be a good idea if you’re an experienced investor who’s getting on in years, if you’re putting money away for a goal that won’t be reached for a relatively short period of time, or if you’re just someone who avoids taking risks whenever possible, then putting your money in the bank is probably You won’t earn much interest on savings accounts that are insured by the FDIC, but you won’t have to worry about your money being lost either. And if the Federal Reserve does raise interest rates in 2022, as is widely expected, then the yields on savings will also go up, making the former a win-win situation.

On the other hand, if you are a speculative investor who is willing to lose your entire principal in exchange for the possibility of amazing rewards, then cryptocurrencies may be a better fit for you than other investments. Keep in mind that any estimates of the price of cryptocurrencies are, by definition, only approximations based on speculative assumptions. Cryptocurrencies do not have an inherent value in the same way that stocks do, which means that stock prices cannot be predicted by analysts using metrics like price-to-earnings ratios, growth rates, or managerial expertise.

It’s possible that certain cryptocurrencies have more compelling tales to tell about their possible applications in the future, but it’s still up for grabs whether or not such tales will ever be realized. However, despite the fact that the potential for profit in cryptocurrency is enormous, it is by no means a given that investors will make a profit from their holdings.