Here's the difference between investing and gambling
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30-year-old has invested very little money and now owns a cryptocurrency worth over $ 350,000. He has no savings or retirement investment other than cryptocurrencies.
Mason thinks that "letting it ride" is a gambling term. Investing is not gambling. Investors use diversification tools to mitigate risk and reduce the potential for loss. Using a single asset class means that you are not mitigating risk by allocating and diversifying your assets.
Investing and gambling are two different types of investments. Investors have specific goals regarding the rate of return, duration and risk tolerance. Gambling is exciting if done well. Investing is boring if not done very well, so it's better to take some of the money off the table and create a more specific investment strategy. Cryptocurrencies have some theoretical benefits, but they are not reliable foundation for financial planning strategies. Always consider taxes when selling cryptocurrencies. It's a tough lesson for many investors if they don't consider the tax obligations on the IRS.
