Is Trump’s Crypto Worth Investing? Experts Measure Weight

Former President Donald Trump has announced the launch of a new cryptocurrency exchange World Liberty Financial where people can buy, sell and sell digital currencies such as Bitcoin. Now the exchange has also taken the next big step to offer its own cryptocurrency: WLFI.

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Because Trump’s name is attached, this new digital currency is attracting a lot of people. But should you invest your money? We talked to two experts who gave us their opinion.

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Any financial advisor will tell you to invest your money in an asset with a proven track record of stability and growth. Trump’s cryptocurrency is new and has no history to back it up. Just because it has a generic name attached to it, doesn’t mean it will work.

“The best things to invest in are things you understand and have a proven track record of success,” said Joe Schmitz, Jr., founder and CEO of Peak Retirement Planning. “You shouldn’t invest in things because people think they’ll make it big.”

Crypto has made huge profits for some, but it has also caused huge losses, too. Some people make a lot of money with crypto. But what worked for one person does not guarantee that the same thing will work for you. If you’re thinking of investing in Trump’s crypto, remember that there’s no way to know if the new cryptocurrency will perform well.

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World Liberty Financial has announced that their currency, WLFI, will become a stablecoin. That means that, at least, its value will be pegged to the US dollar. This should prevent extreme price swings of common cryptocurrencies from happening. But there are still big risks. Stablecoin relies on World Liberty Financial to maintain its value. You have to trust that World Liberty Financial has enough money to back every coin they issue.

“I don’t recommend investing in Trump’s crypto or any other cryptocurrency,” said Thomas J. Brock, of RetireGuide.com. “Cryptocurrency is a highly speculative asset; it is not a wise investment. Cryptocurrency does not provide any currency, and has no economic value. The only way you can make money with cryptocurrency is if you sell it to someone else for a higher price than what you paid for it. Unfortunately, given the volatile nature of cryptocurrencies, it is difficult to make the right time to buy and sell. ”

Remember that unlimited growth is not possible. There is a high chance that you will be left holding useless assets. Traditional investments such as bonds or index funds are slow to earn returns, but they are popular.

It’s easy to think that crypto is an easy way to get rich quick. Big deals can make it look like a way to double or triple your money overnight. But that is more of a gamble than an investment. Real investing doesn’t work that way.

“Investing is a long-term game,” Schmitz said. “Investing should be done with a long-term perspective in mind, always. Cryptocurrency does not have a long track record of success. Maybe one day it will be, but for those who are actively saving and predicting retirement, crypto is probably not the best investment for you. ”

The best and safest way to invest is in assets such as index funds, where you will see steady, reliable growth over time. These funds track the performance of groups of companies in the stock market. Instead of betting everything on one asset, your risk is spread. Index funds usually grow slowly, and you benefit when the overall market grows. It is a safe and easy way to invest.

The most important rule in crypto – and especially any new currency like Trump’s – is only to invest what you are comfortable losing. This is not the same as buying shares in an index fund with a long track record.

“Cryptocurrency can provide additional diversification benefits to a portfolio consisting of stocks, bonds and cash,” said Brock. However, if you buy cryptocurrency, be sure that you can afford to lose a lot of money, if not all of it.

If you are thinking about investing in WLFI, just know that it can go to zero. That’s true of any digital asset, especially new ones. You are betting. But if you’re willing to buy into Trump’s crypto, only use money you won’t miss if it disappears overnight.

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Is Trump’s Crypto Worth Investing? Experts Measure Weight

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