Questions?
We have answers

Investing in cryptocurrencies

When investing in standard markets, such as the stock market, it’s typical to see them fluctuate by 1% or 2% on a daily basis. In the cryptocurrency market, on the other hand, you wouldn’t be surprised to see price variations higher than 10% in a single day.

Because of that, cryptocurrencies can be an option to diversify your investment portfolio, acting as a plan B for your traditional assets. However, cryptos aren’t usually recommended for people who are investing short-term.

 

Cryptocurrencies are a risky asset class, which should be carefully researched and evaluated by anyone thinking about purchasing a particular cryptocurrency. Please remember that diversification is not an investment strategy without risk, and in certain circumstances, it may not fit your investment objectives.

Cryptocurrencies can be an interesting option when it comes to portfolio diversification, and their value may increase significantly as more people begin to use them as a cheaper and faster way of exchanging money.

*Passfolio is the brand name of Panchain, Inc. Passfolio Securities LLC and Passfolio Financial LLC are fully-owned subsidiaries of Panchain, Inc. Securities and cryptocurrencies are very different types of assets. Cryptocurrencies are not securities. Purchasing cryptocurrencies comes with a number of risks. Please read Passfolio Financial Cryptocurrency Risk Disclosure. Currency and cryptocurrency exchange services provided by Passfolio Financial LLC (“Passfolio Crypto”), a US Money Services Business registered with FinCEN. Passfolio Financial LLC is not a broker dealer. Cryptocurrencies are not protected by either FDIC or SIPC. Securities products and services offered to self-directed investors through Passfolio Securities LLC Member FINRA / SIPC. Passfolio Securities, LLC does not provide cryptocurrency-related services. Passfolio Securities LLC is a member of SIPC, which protects securities customers of its members up to $500,000 (including $250,000 for claims for cash). Explanatory brochure available upon request or at www.sipc.org. To purchase securities using cryptocurrencies, you must first convert it into U.S. Dollars using Passfolio Financial LLC. You must then move the U.S. Dollar proceeds to your brokerage account at Passfolio Securities LLC where you can use it to buy securities.

SUGGESTED READINGS

Cryptocurrency security

Passfolio Crypto is a product of Passfolio Financial. We have partnered with Gemini to custody cryptocurrency. The majority of your...

Crypto trading fees

Cryptocurrency trade fees are based on the order amount: $0.99 for orders not more than $10, $1.49 for orders not more than $25...

Cryptocurrency trading

Cryptocurrency trading is available to anyone that passes our Know Your Customer and Anti-Money Laundering processes. Please note that...

Share article
Copied!