If you’ve had your ears pricked recently by reports regarding amazing returns from investing in Bitcoin or other Crypto currencies, or investigated other buzzword topics such as Blockchain technology, then it can be quite a baffling learning process to even understand, let alone to start making educated investment decisions in what has become a highly volatile market place.

We all dream of winning big in a ‘get rich quick’ gold rush, however, history shows that by the time the investment bubble reaches the masses – it is usually about to go pop. It is indeed true that some individuals have made a huge fortune from investing in Cryptocurrencies – gains in Bitcoin, Ethereum and Ripple have reached 1,200%, 10,300% and 24,200% respectively – therefore it is little wonder there are many keen to jump aboard the bandwagon.

There are also many penny-share companies metamorphosing to tempt unwitting investors, and in some cases, to devastating effect. In a recent article, The Motley Fool website used an example of Croe, a sports clothing company, ‘re-inventing’ itself as The Crypto Company – and in the space of just over three months – the $0.01 share price went interstellar… at one stage before being suspended for investigation by the US Securities and Exchange Commission, the price topped $642 per share, equating to a market capitalisation of $12.6 billion. The report said; “To put that in perspective, at that point The Crypto Company was worth more than Harley-Davidson.”

It went on to state; “As many as 42,500 shares traded hands above the current level of $174. While that isn’t a lot on an absolute basis, don’t tell that to the individual investors who have lost a bundle and don’t know if or when they’ll ever be able to sell their shares on the open market.” That serves to remind us that we should never invest in anything we don’t fully understand.

Tim Norris, founding Partner at The Financial Planning Group, said on the pitfalls of Crypto Investment; “We have a robust investment process that leads to expert financial planning and investing for our clients not speculating.”

For the past 25 years, The Financial Planning Group have helped individuals, families and businesses to place their financial affairs in context with their future goals and aspirations. We provide a simple, structured, disciplined and reviewable planning service. We will change the fundamental relationship people have with their money to give them confidence and clarity in their own future. We want our clients to value our service, as much as we do.

If you would like to arrange an investment consultation, please call Tim Norris or Alan Clifton on 0800 731 7614 and we would be delighted to arrange a meeting at our offices in the heart of Teddington.

Further examples of the pitfall in investing in crypto scams and the pitfalls associated with risking your hard earned money in ‘too good to be true returns’ can be read by checking out the full article here https://www.fool.com/investing/2018/01/21/the-strange-tale-of-the-crypto-company-what-invest.aspx

 

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