Over the last few years, the cryptocurrency market has grown to become a significant part of the globe’s financial market and investment system.

The world crypto market size was valued at $1.49 billion in 2020 and is expected to reach $4.94 billion by 2030, growing at a compound annual growth rate of 12.8 percent from 2021 to 2030.

It has through its very digital nature, attracted a strong following among Gen Zs and millennials who connect with the concept of digital currency.  Increasingly many older investors, 40 years plus are starting to play in the crypto space investing in Bitcoin, Eth and other alt coins.

The most common question I get asked, is ‘should I consider crypto?  

Hartmann shares his thoughts on crypto and whether

Should I consider crypto

“Investing involves a lot of decisions, but it also requires an understanding of what you want to get out of your investment and where you are at in terms of your life cycle,” Hartmann said.

“Most people have superannuation sitting with an institutional organisation that they continue to contribute to on a regular basis.  In addition, they may have a home that they are paying off and possibly an investment property or shares.   These assets are traditional and tend to carry a lower level of risk.

“Crypto is certainly higher risk and extremely volatile.  Investing in crypto is not for the feint hearted however the returns that can be made on alt coins that ‘moon’ have turned many people into crypto millionnaires, virtually overnight.

“Everyone’s situation is different however there is always one constant when it comes to investing, greater returns involve greater risk, so if you have the money to burn and it’s not going to hurt if you lose it, then crypto may be worth considering.”

What crypto should I invest in

“As we know, Bitcoin was the first digital currency to launch and it has grown in value significantly over the years.  There are literally thousands of different coins to choose from but there are some key things to understand,” Hartmann said.“

“It is important to look for coins that have utility.  Eth is the second biggest coin by market cap and it is the native cryptocurrency of the Ethereum platform.  Many believe the blockchain platform will form the basis for much of the world’s smart contracts across the financial system as it evolves and grows.

“Decentralised finance is already disrupting the banking and financial establishment and regulators are trying to work out how to deal with it.

“Do your research, look at who is behind the coins, do they keep the market updated regularly, do they have a clear road map and how have the coins performed during dips – have they shown resilience and bounced back well?  Check out sites such as TradingView and CoinMarketCap to find out more information about their trading history.  All these things are important when considering which coins to invest in.”

What is the metaverse

“Metaverse is a term many people are using and it means a network of 3D virtual worlds that enable social connection,” Hartmann added.

“In the crypto investment space, there are a few popular coins such as Sand and Mana that are used in games.  Sandbox is a virtual world based on the blockchain that allows users to create, build, and trade digital assets in a game.  Iconic brands such as Adidas and ASICS have already moved into the metaverse space and others are set to follow.

“Are these types of coins worth considering?  If we look at the top three metaverse tokens by market capitalisation, you’ll note they are all gaming related.  They include Axie Infinity, the Sandbox, and Decentraland, and for most people operating within the crypto sector and the metaverse sector in particular, gaming will continue to be the dominant trend and a key area of exponential growth.”

Where do I buy crypto

“There are a multitude of crypto exchanges to choose from,” Hartmann added.

“Binance, Coinbase Exchange, FTX, Kraken, just to name a few.  While many people keep their coins on exchanges and take advantage of the staking benefits, many others enjoy the decentralised nature of crypto and store their coins in their own wallet.

“Exchanges offer different benefits and rates for trading.  Regardless of where you buy, make sure you do your homework first and chat to your financial advisor about diversifying your portfolio before you invest in crypto.  Ensuring you have a balanced portfolio of investments is important, but in my view, given the growth of the crypto sector, it is important to consider it as part of your overall wealth creation strategy. You would be crazy not to.”

Dean Hartmann is an experienced and highly respected money enthusiast.