Purchase

Donald Trump fulfills his promise to be “head of encryption”. I took steps To study the feasibility of storing the cryptocurrency after his friendly campaign to encrypt to the White House. It has launched He has Mimi Quinn.

For some investors, this is all the encouragement they need to accumulate in Bitcoin and Ethereum and other digital assets. After all, if this American administration is to press for the pro -profit policies, shouldn’t it enter before the next boom? Is it also legitimacy to the sounds that say Encryption Will it provide you with a kind of reset the monetary system?

Not so quickly. With uncertainty about global trade, markets, cost of living and more, financial concern in general is high. One of the principles of personal financing is that the presence of an emergency box helps the weather a variety of financial storms. This temporary store also reduces financial anxiety.

but New search In a review of behavioral financing indicates that encryption investors do not get the same psychological benefits from emergency savings, moreover, they tend to be financially more worried during unconfirmed times than unpleasant investors. In other words, even people with a financial pillow feel less safe if they put money in digital assets.

Many investors believe that encryption is a hedge against uncertainty. Part of logic is that if the traditional markets are unexpected and inflation in savings, the transfer of money to encryption provides a form of protection. The problem is that this theory does not actually stand up.

The study studied how encryption investments affect financial anxiety, especially among those who have savings on a rainy day. The results were clear: While obtaining emergency savings generally reduces financial tension, this interest is much weaker for those who invest in encryption.

Why? Because severe Crypto fluctuations do not provide peace of mind – they nourish stress. When it wears the markets, investors in the various stocks and portfolios may feel the picker, but encryption holders often feel panic. The study found that encryption investors were more financially financially worried, and when facing a job loss or financial distress, they suffered a much larger stress than non -exchanged investors.

Mr. Trump The pro -carboto position may encourage a new wave of retailers to jump in it, believing that political support is equivalent to the stability of the market. This is a serious misinterpretation. Government friendliness towards the industry does not change the basic risks of that industry.

We have seen this course before: noise escalate, speculation grows, new investors move, and they are convinced that they were getting early on a financial revolution. Sometimes it is just a behavior chase. Hope is not a strategy.

Crypto is similar to its place, but this place is not a substitute for providing traditional emergency or a well -appropriate investment portfolio. If you are considering adding Bitcoin, Ethereum or other encryption assets to your wallet, here is what you need to take into account,

1. Do not make mistakes in the political enthusiasm of the wisdom of investment. Just because the administration is a supporter of rent, it does not mean that it is a safe bet for you. Political support may not make encryption assets less volatile.

2. Keep your savings in emergency and investments sporadic. If you need a quick access to criticism in a crisis, Crypto is one of the worst places to keep it. Market accidents, exchange failure and liquidity issues can leave you when you need more money.

3. Diversification beyond speculation. If you invest in Crypto, deal with it as a speculative origin, not the basis of your financial plan. A good diversity portfolio is the best hedge for you from uncertainty. Crypto financial professionals suggest 1 per cent customized To Bitcoin a lot, this assumes that you are balanced regularly. Zero is fine, also: The well -executed wallet has shares that are directly or indirectly exposed to various encoding assets already.

Every time the markets feel uncertain, it seems that the temptation of a great bet on encryption reappears for ideological reasons, not basics. But this new research shows the matter, what appears to be financial security today, it can turn into financial pressure tomorrow.

The best investors do not chase the next big thing, they avoid the biggest mistakes. And the treatment of encryption as a safe haven, this is a mistake that many investors cannot do.

Brett Panerry He is a consultant for wealth management industry with a focus on commercial applications for behavioral financing research.