Is Bitcoin a Good Investment? Understanding Cryptocurrency & Different Ways to Invest Money


Cryptocurrency, bitcoin, blockchain, Ethereum. These are all current “buzzwords” in the financial space – but what are they? Even with cryptocurrency being the most talked about financial topic today, it is still a new concept and technology with a lot of unknowns. As with any financial decision, you need to make sure to not get caught up in what may seem like a good investment opportunity and do your research before investing your hard-earned money.

What is Cryptocurrency?

There are many variables to cryptocurrency and the technologies associated with it. Here are definitions to a few of the most important cryptocurrency terms.

Cryptocurrency: A method of currency based on software platforms that use encryption for regulation instead of banks or government entities.

Blockchain: The software or database cryptocurrency is based on that records all transactions.

Bitcoin: An open-source, public form of digital currency built on blockchain technology. Bitcoin was one of the first forms of cryptocurrency.

Ethereum: An open-source, public software platform based on blockchain technology. It has its own form of currency called ether.

Is Cryptocurrency Safe?

While all investments are risky, cryptocurrencies have only been around a few years, so there isn’t a lot of background data and its outcomes and patterns are still unknown. The cryptocurrency market has seen rapid and immense growth in recent months, but with that growth has come large fluctuations in the value of bitcoin and other cryptocurrencies. This fluctuation makes it hard to give answers to questions such as, “is bitcoin a good investment?” and “is bitcoin safe?”.

Although it is unclear what is in store for the market over the next year or even month, Vitalik Buterin, co-founder of the cryptocurrency Ethereum, offers a reminder to anyone thinking about this type of investment: “cryptocurrencies are still a new and hyper-volatile asset class and could drop to near-zero at any time. Don’t put in more money than you can afford to lose. If you’re trying to figure out where to store your life savings, traditional assets are still your safest bet.”

Different Ways to Invest Money

Although investing in digital currency may seem like an exciting opportunity, there are many different ways to invest money. Some of the best bitcoin alternatives are traditional investment opportunities such as stocks, bonds and investment funds as well as certain bank products. Unlike cryptocurrency, these methods have been proven, and there is more information available about the risks, rewards and history of these methods of investment and saving.

Banks can provide individuals and businesses a safe way to accumulate savings while earning interest. Two of these opportunities are:

  • Money market accounts: An interest-bearing account that is FDIC-insured* and typically has higher interest rates than savings accounts. Money market accounts offer limited check-writing ability and may require a higher minimum balance than other savings accounts. In addition, there are restrictions on the number of transactions that may take place each month.
  • Certificates of Deposit (CDs): A bank-issued certificate for a deposit that earns interest at a certain rate for a specified amount of time. CDs are generally considered safe investments since they are FDIC-insured* and usually have higher interest rates than other types of savings accounts—money market accounts, for example.

For more information on Revere’s CDs, money market accounts and other small business investment opportunities, click here or call 866-950-5784.

While cryptocurrencies may be the latest investment opportunity, there are still a lot of unknowns in investing in digital currency. Traditional investment and savings opportunities like money market accounts and CDs are less risky and still offer good returns on your money.

*Consult with a bank representative for information related to FDIC insurance coverage.


This publication does not constitute legal, accounting or other professional advice. Although it is intended to be accurate, neither the publisher nor any other party assumes liability for loss or damage due to reliance on this material. Websites not belonging to this organization are provided for information only. No endorsement is implied.


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