Up and Coming Weekly is a weekly publication in Fayetteville, NC and Fort Bragg, NC area offering local news, views, arts, entertainment and community event and business information.
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WWW.UPANDCOMINGWEEKLY.COM AUGUST 25-31, 2021 UCW 17 DEBBIE BEST, Financial Advisor at Edward Jones Investments. COMMENTS? 910-488-7535 1 ANNE WILSON My Jesus 2 LAUREN DAIGLE Hold On To Me 3 EVAN CRAFT, DANNY GOKEY Be Alright 4 CASTING CROWNS Scars In Heaven 5 ELEVATION WORSHIP Graves Into Gardens 6 PHIL WICKHAM Battle Belongs 7 CROWDER Good God Almighty 8 CAIN Yes He Can 9 CECE WINANS Believe For It 10 TOBYMAC Help Is On The Way MONEY Bitcoin: Investing or speculating? Submitted by DEBBIE BEST Many people have decided that bitcoin is the next big thing – and they are backing up their enthusiasm with dollars. Should you consider putting money into bitcoin or other crypto- currencies? First of all, keep in mind an es- sential piece of financial advice: Don't invest in something you don't understand, and bitcoin is not easily understandable. ere's no physical bitcoin, nor is it backed by a bank or government. It's a digital currency used for transactions on a decen- tralized network of computers. e market's demand for bitcoin largely determines its price, though other factors are also involved. And this price can vary widely. Since bitcoin was introduced in 2009, it has gone through periods of enor- mous gains and precipitous declines. Its short history has reminded market watchers of the bursting of the "dot. com" bubble in 2000 and the housing market bubble in 2007. ese results have raised the following question about purchasing bitcoin: Is it invest- ing or speculating? ere's a big difference between the two. Speculators engage in risky transactions with the hope of profit- ing from short-term price fluctuations in various financial vehicles. Inves- tors, on the other hand, stick with the following practices: Follow a long-term strategy: Real investors follow a long-term strategy based on their goals, risk tolerance and time horizon. Generally speak- ing, long-term investors don't do a lot of buying and selling, saving on fees and potential taxes. But this "buy and hold" approach doesn't mean inves- tors put their portfolios on autopilot. Instead, they review their portfolios at least once a year to make sure their investment mix is still appropriate for their needs. Focus on quality: Long-term inves- tors stay away from the flashier – and riskier – financial instruments. In- stead they seek quality. When they're considering stocks, for example, they look for companies with solid funda- mentals including strong manage- ment teams, competitive products and services and business plans that bode well for the future. When they buy bonds, they seek those with high credit ratings issued by the indepen- dent rating agencies. Focusing on quality doesn't yield quick results, but it can instill confidence in one's investment choices. Diversify holdings: If a downturn in the financial markets affects one type of asset particularly hard, and your portfolio contains a high concentra- tion of that asset, your financial strat- egy could be jeopardized. Long-term investors reduce this risk by owning a variety of investments. While diver- sification can't guarantee profits or protect against all losses, it can help reduce the impact of market volatility on your portfolio. And here's one more difference between investors and speculators — track record. Investors put their money into companies that provide tangible goods and services, and these companies have historically grown with the overall economy. Stocks and bonds are established investment vehicles with well-defined and regulated markets. Consequently, investors can assume a certain degree of predictability, though, of course, stock prices will always fluctuate in the short term and there are no guarantees against loss of principal. Cryptocurrencies, on the other hand, are relatively new, largely unpredict- able and will likely face increased regulation in the future, with the ultimate risk being an outright ban by some governments. You work hard for your money, so think carefully about how to best use it to reach your lifetime goals.