Newer Investors Favor Crypto Over ETFs—Here’s Why Experts Warn Against It
Key Takeaways
- Crypto’s promise of huge returns and tech-driven innovation has been attracting newer investors.
- Experts warn that cryptocurrencies can swing far more widely than the most popular exchange-traded funds (ETFs).
- Broad market ETFs offer built-in diversification, regulatory protection, and professional management, while direct crypto investments expose you to potential hacks, fraud, and the risk of a total loss.
It’s no secret that crypto is winning the popularity contest among first-time investors. For many, hopping onto Coinbase is easier than wading through mutual fund prospectuses. Social media amplifies crypto’s “rebellious” ethos, a place to escape Wall Street, and maybe strike it rich overnight.
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