What are the risks associated with investing in Bitcoin or a Bitcoin-linked ETF?

Article author
Alexander G.
  • Updated

Bitcoin is a type of cryptocurrency. Cryptocurrencies typically have more unpredictable price changes when compared to investing in stocks or bonds. 

 

The unpredictability of price change is known as risk. The more unpredictable something is, the higher the risk. 

The more bitcoin or cryptocurrency you have, the riskier your overall portfolio will be. 

Having Bitcoin in your portfolio isn’t always a bad thing though! Bitcoin and other cryptocurrencies are typically not influenced by price changes in your stocks or bonds. 

If your stocks or bonds are down, you may see your Bitcoin price stay the same or even go up. Having a mix of different investments can help you weather market bumps long-term. 

 

Please see acorns.com/disclosures for other risks and a link to the prospectus.

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