Is the Crypto Market Bouncing Back? Here's What You Need to Know

In an economy withhigh inflationandrecession risks looming, is crypto still a worthy investment?

Critics have calledbitcoin,stablecoinsandNFTssimply a new digital version of an old con primed toswindle and scam.

This is designed to make it more secure, in theory.

Despite gyrating prices and a relativelack of regulation, cryptocurrency is seen by many as the next financial frontier.

What are the risks of investing in crypto?

Before investing in crypto, you should know there’s almost no protection for crypto investors.

And since this virtual currency is extremely volatile and driven by hype, that’s a problem.

You should be on the lookout for cryptoscams.

When it does, the scammers sell out, often pushing the price down for everyone else.

These scams are prominent, and they took in more than$2.8 billion in cryptoin 2021.

From the US government’s current policy perspective, you’re on your own.

At this time, the government provides no deposit protection for crypto as it does for bank accounts.

(Neither Coincover nor Breach Insurance will cover you against scams.)

I think crypto is a venue through which you might actually break the system."

(So much forbitcoin’s reputation for anonymous transactions.)

Once your account is set up, it’s simple to transfer money into it from your bank.

“We know that on average stocks return about 6% more than bonds.

Like all investment decisions, how much you pour into crypto will depend on your risk tolerance.

Whether you’re buying, selling or exchanging crypto, the IRS wants to know about it.

Buying and holding also doesn’t need to be reported.

Adding crypto trades won’t make your tax return any easier.

Buying tokens is the most straightforward approach to experimenting with cryptocurrencies.

But other opportunities exist for exploring the crypto world while potentially protecting your money from seesawing swings.

Here are a handful of alternatives:

Buy shares of crypto companies.

Many companies in the crypto space are publicly traded.

you could also buy shares of companies that make crypto-related hardware, such as Nvidia and AMD.

Invest in crypto ETFs or derivatives.Specialized exchange-traded funds, or ETFs, are available for crypto.

Get a job in crypto.LinkedIn, Indeed and Monster list thousands of jobs in crypto.

There’s alsoCryptocurrency Jobs, a job board dedicated to blockchain careers.

And beyond crypto, there are other digital assets to consider, too, includingNFTs.