Seven questions to ask yourself if you decide to invest in cryptocurrency

Despite high market volatility and regulatory problems, the popularity of cryptocurrencies is steadily growing. Many investors view them as a rather attractive, albeit risky, area. How do you know if you should invest in cryptocurrency?

Having decided to trade on the cryptocurrency market, the first thing to consider is volatility. 

Second - you can lose everything you invested. Conversely, you can earn a tidy sum as cryptocurrency prices jump like Easter bunnies.

Below, seven members of the Forbes Financial Council have compiled a list of the seven main questions that every novice investor should ask themselves before investing in cryptocurrency. The Forbes Financial Council is a closed organization, its members are the heads of successful financial and accounting companies. 

1. Is this right for me?

Ask yourself “how does this fit into my financial planning goals?” The cryptocurrency market has a short history, and sometimes it is impossible to predict how prices will behave. I personally would not risk leaving a stable job for a career in a completely new field!"  ( Justin Goodbread, Heritage Investors.)

2. Am I willing to lose my money?

" The fact is that at any time, 100% of the value of your investment can be lost due to devaluation or as a result of the actions of cybercriminals. This is not the situation that a person who has invested their last money wants to find themselves in."  ( Brian Ellis, SDIS )

3. Do I like Vegas?

"If bonds are old people, stocks are middle-aged people, then cryptocurrencies have just been born. Market dynamics change every week as millions of participants join in. No one knows for sure which token issuers, regulators, or even governments will be able to protect investors in the future. Investing in cryptocurrencies now is like a trip to Vegas, but without the parties and concerts." (Etish Davda, EquityZen.)

4. Do I like roller coasters?

This is something you have to ask yourself. And if the answer is yes, then buckle up and hold on tight. If the answer is no, you should stay away from cryptocurrencies. You definitely won't like it. (Louis Balasny, bot.)

5. Who can you trust to teach you?

“Cryptocurrencies are incredibly complex, investors must either sacrifice a lot of time to become experts, or have enormous trust in their team of assistants and consultants... The wild ride of cryptocurrencies allows many to profit from volatility."  ( Drew Gurley, Redbird Advisors)

6. What is my goal as an investor?

"Before you buy cryptocurrency, ask yourself “what do I want to achieve?” If you just want to speculate, then treat it as a consumable and not as a savings. Digital currency is not backed by real assets and is very unstable. If you like to make extra profit by playing craps or investing in Bitcoin, then that's fine. However, you should not look at cryptocurrency as a ticket to retirement or to the Maldives." (Jay Shah, Personal Capital)

7. Do I understand what “investing” means?

Cryptocurrencies will have practical applications in the future, but they are not classic investments. It is like speculation or roulette in a casino. You are used to investing in familiar companies that produce a product, hire people, pay taxes and receive profits that are distributed to their investors. Cryptocurrency companies do none of the above, so to some extent they are dangerous for non-professionals.

According to https://www.forbes.com