Here’s an article from The New York Times that I thought you’d find interesting. It is written by Carl Richards, one of my favorites.
Before chasing Bitcoin or some other shiny thing, ask yourself this first: What are my financial goals? And does speculating fit within those goals?
” Investing is different from speculating or gambling. Investing is a means to an end, and that end is our collective financial goals. Beating the stock market, buying what’s hot, outperforming a brother-in-law — those are not financial goals. Financial goals are things like having money to send kids to college, buying a house, taking a trip or retiring someday. This is why we invest.
If we start by declaring that certain important goals are the reasons we are investing, then we can move on to figuring out the investment process that can help us meet those goals while taking the least amount of risk. The moment we start down that road, we run into the closest thing we have in finance to the law of gravity: diversification.”
Carl Richards.”Should You Buy a Bitcoin? Ask a Different Question First”, New York Times, Jan. 5, 2018. Web. 17 Jan. 18. www.nytimes.com/2018/01/05/your-money/bitcoin-investing.html