Bitcoin's dizzying price movements make it a risky investment, say investing experts: 'It's pure, unadulterated speculation'

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Bitcoin's rollercoaster price movements are a reminder why it shouldn't be a big part of your investment strategy, financial planners say.

. It has since bounced back somewhat, hovering near $57,000 as of Thursday morning, but that's still down from a $71,000 peak in June.serve as a stark reminder of how erratic the cryptocurrency can be and why financial planners often consider it a discretionary investment.

So, should it be part of your overall investment strategy? Financial planners differ in their opinions on if or how to incorporate it into your portfolio, but tend to agree it's a risky bet that shouldn't be the basis for your retirement savings.Despite the risks involved, some financial planners see value in purchasing bitcoin as a speculative asset, but only with money you'd be comfortable losing.

That said, a small allocation to crypto — about 1% to 2% of your portfolio — can be considered "if you have a strong interest and understand the risks," he says.

 

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