Disclaimer: The information provided in this article is for educational and informational purposes only and should not be considered financial advice. The author is not a financial advisor and the content of this article is not intended to be a substitute for professional financial advice. Always seek the advice of a qualified financial professional before making any financial decisions.
Bitcoin and banks present different investment opportunities, each with advantages and disadvantages. Bitcoin is a decentralized digital currency that operates independently of traditional banking systems, while banks provide more conventional investment options like savings accounts and Certificates of Deposit (CDs). But which investment alternative is more suited to your needs? Let’s take a closer look, emphasizing how Savvy Trader can assist you in navigating the world of Bitcoin investments.
Tracking Bitcoin with Savvy Trader
If you’re considering investing in Bitcoin, Savvy Trader is an invaluable tool to help you get started. This platform allows you to monitor Bitcoin and compare it to indices like the S&P 500 and other investor portfolios. Additionally, you can gain insights into other investors’ decisions and their rationale for investing in Bitcoin, which can be an essential resource when making investment choices.
The following screen capture is an example of an expert investor on Savvy Trader explaining why they purchased Bitcoin and their opinions on broader economic events and Bitcoin’s volatility. If you subscribed to the investor, this is what you would have gotten as a notification:
Using Savvy Trader’s performance comparison tool, the following image compares Bitcoin with the S&P 500’s performance over a one month period:
Bitcoin Volatility: High Returns, High Risks
Historically, Bitcoin has outperformed traditional banking investment options in terms of returns. That said, Bitcoin is also a highly volatile and speculative investment, with its value prone to significant fluctuations within a short timeframe. Consequently, investing in Bitcoin necessitates a high-risk tolerance and a long-term investment strategy. The following image was generated with Savvy Trader’s performance graph and shows Bitcoin’s volatility over many years, going from below $1.00 to peaks above $60,000.00!
Savvy Trader and Portfolio Diversification
Savvy Trader isn’t just limited to tracking your Bitcoin investments; it also helps you monitor and manage a diversified portfolio. With its easy-to-use interface and helpful investment features, Savvy Trader enables you to analyze your assets, track performance, and adjust your portfolio based on market changes and investment objectives.
Savvy Trader is an excellent resource for both experienced and novice investors looking to stay up-to-date on their portfolios. The following image was generated in Savvy Trader as a one-click sharable graphic of the portfolio’s Positions, including Cash:
Cryptocurrencies Beyond Bitcoin
While Bitcoin is the most well-known and widely-used cryptocurrency, many other digital currencies are available for investment. Alternative cryptocurrencies, or “altcoins,” offer potential investment opportunities for diversifying crypto holdings. Savvy Trader also supports tracking and analyzing various altcoins, allowing you to explore and compare digital currencies based on market data and other investors’ experiences.
The Bottom Line
In the world of investing, there is no one-size-fits-all approach. Each investor has unique goals, risk tolerances, and time horizons. The key is to create a well-balanced and diversified portfolio that aligns with your specific needs and objectives. Whether you invest in Bitcoin, banks, altcoins, or a combination of all three, Savvy Trader can be an invaluable tool to help you make informed decisions and track your investments, providing you with the insights needed to navigate the ever-evolving financial landscape.