7 Reasons Americans Aren't Buying Crypto

Interest in cryptocurrency is growing, but because of this, some people stay away.

There is no such thing as a risk-free investment. When you open a brokerage account and fill it with stocks, you run the risk of their value falling over time.

Similarly, cryptocurrency bears its share of the risk. Not only is it a fairly new investment, but its future is also fairly uncertain. Even so, according to a new research study by The Ascent, over 50 million Americans are likely to buy cryptocurrencies in the next year.

Even so, some people seem unwilling to add cryptocurrencies to their portfolios. Here are seven reasons investors stay away.

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1. "I don't know what to do with it"

Not knowing what to do with cryptocurrencies is a big reason many people avoid them. Nowadays, a limited number of merchants accept cryptocurrency as a form of payment. But many people who buy cryptocurrency don't do so as a backup means of paying for things. Instead, they buy crypto to make money by selling it for a profit, just as you would buy a stock and potentially cash it out at a higher price.

2. "I don't understand how to buy it"

The good news is that you can also invest in cryptocurrency with some of the same brokers you use to buy stocks. They will also provide resources to help you understand how to invest in crypto. You can also check out this list of cryptocurrency exchanges and apps if you are interested in owning some.

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3. "I've never heard of it"

Usually investing in something you don't understand is not a good idea. So, if you've never heard of cryptocurrency, you probably shouldn't be buying it. However, there are plenty of resources out there to help you learn more about crypto. First, take a look at the following:

4. "I think it's a bad investment"

If you are convinced that cryptocurrency is a bad investment choice, it probably shouldn't have a place in your portfolio. But before you make that call, make sure that you have really read up on cryptocurrencies. Also, you may not want to put all digital currencies in the same category. There is a difference between buying Bitcoin and other popular cryptocurrencies compared to buying a lesser-known coin that hasn't been around for that long.

5. "It's too expensive"

Just as stock prices can fluctuate, so can the value of various cryptocurrencies fluctuate. If you are really interested in trying your hand at this area, just follow the news. Cryptocurrencies tend to move wildly, and if you wait for prices to fall and a currency like Bitcoin plummets, it can fit into your investment budget.

6. "I'm waiting for more people to start"

As mentioned earlier, many people don't buy cryptocurrency to use - they buy it in hopes of selling it for a profit. If you're waiting to get to a point where paying for groceries with Bitcoin or any other digital currency is as common as pulling out cash or a credit card, you might end up waiting a long time.

7. "I feel like it's too late"

Without a crystal ball, it is impossible to determine how much growth the cryptocurrency will ultimately enjoy. Hence, don't assume that it's too late to get into the action. There are many stocks whose share prices are significantly higher today than they were five or ten years ago, but are still a solid buy. We don't know what the future holds for cryptocurrencies, but if you're interested in buying them, the fact that you're a touch late for the party shouldn't necessarily deter you.

Is Cryptocurrency a Good Investment? There is no easy way to answer this question. But if you've stayed away from it for any of the reasons above, it's worth at least a little digging and making sure this is the right call. You may find that cryptocurrency is wrong for you and that you'd better stick with stocks. But make sure you have done your research before reaching that conclusion.

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