Commemorative dogecoins on display in Yichang, China on May 14, 2021.
Barcroft Media | Barcroft Media | Getty Images
When my clients ask about dogecoin, many say they are intrigued about the potential investment because of the news and excitement around it.
As the conversation gets more serious about investing in cryptocurrency, I ask why they want to do that. I then ask what value they think it might bring to their portfolio. There is always room for a productive conversation and I therefore tell a client they should never invest in cryptocurrency if it takes away from the original financial goals they set.
I also ask how long they think they’d be able to stick with that investment if or when volatility arrives. Once the tough questions are answered, I can determine how much of cryptocurrency investment makes sense for that particular client’s portfolio.
(If the answer to my first question is because “it’s hot right now” or a friend told them to buy it, I explain that they are probably looking to invest in cryptocurrency for the wrong reasons.)
The answer as to whether someone should invest in dogecoin — which is all the rage right now — is, of course, different for every investor. As with any type of investment, the investor needs to exercise