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Crypto Weekly

Some workers will soon be able to invest in cryptocurrency through their 401(k) plans. ForUsAll Inc. has partnered with a cryptocurrency exchange so that employees can invest up to 5% of their 401(k) contributions in Bitcoin, Ether, Litecoin, and other cryptocurrencies.

401(k) plans and IRAs do not offer crypto investments at this time. According to the 2021 Trends in Investing Survey published by the Journal of Financial Planning and the Financial Planning Association, financial advisers may be ready to embrace cryptocurrency.

Initially, only 1.4% of advisers indicated they were using or recommending cryptocurrencies to their clients in the 2018 survey. The percentage fell to below 1% in 2019 and 2020, but has risen to 14% of advisers who use or recommend cryptocurrencies in 2021.

Almost a quarter (26%) of advisers anticipate increasing their use or recommendation of cryptocurrencies. Four out of every five said clients had inquired about investing in cryptocurrencies in the last six months, up from 17% in 2020. According to Tyrone Ross, CEO of Onramp Invest, a crypto asset platform, "we've reached an inflection point in the wealth management space. Now, advisers are faced with clients who demand knowledge, access, and advice from them about crypto assets."

According to USA TODAY, celebrities, billionaires, and athletes can't get enough of the crypto craze. Should you join in? That depends on your tolerance for extreme volatility. The following is what financial experts have to say:

How do cryptos work?

Cryptocurrencies are digital money that can be created and exchanged through a decentralized computer network. The transactions are secured and verified through coding.

Crypto Weekly

Originally launched in 2009, Bitcoin is the most popular cryptocurrency today. It acts as a public ledger for transactions, using blockchain technology, serving as a replacement for government money. Traders usually use the currency for speculation instead of payment. The VAA central authority does not regulate Bitcoinfidence since a central authority does not regulate it.

Cryptocurrency prices are determined by supply and demand. Since many cryptocurrencies are designed to maintain a high level of scarcity, the rate at which they can be exchanged for another currency can fluctuate widely. Cryptocurrencies do not represent a currency supported by governments, nor are they company shares. Experts don't know what determines their underlying value.

What drove the crypto-mania in 2021?

Several factors are driving the crypto craze in prices. Experts say that with the stock market at record highs, interest rates at historic lows, and real estate prices rising, investors are looking for more ways to diversify their portfolios and generate returns. Some of the wealthiest clients of Morgan Stanley and Goldman Sachs have access to Bitcoin funds.

The debut of Coinbase as a publiclytraded company in April attracted both day traders and new amateur investors. The exchange was founded as a more straightforward way to trade digital coins. It helped spur a rally in cryptocurrencies, pushing virtual tokens like Dogecoin, Bitcoin, and Ether to record highs in the spring. After reaching an all-time high in April, Bitcoin has lost roughly 40% of its value in just two months. Due to the Coronavirus pandemic, "meme coins" such as Dogecoin have gained in popularity as more people work online. "These same factors also fueled meme stocks" like GameStop.

The price of Dogecoin rose earlier this year following enthusiasm from a group on Reddit called r/SatoshiStreetBets, which aims to boost the price of cryptocurrencies. WitDogecoin has been riding a similar Reddit wave to stocks like GameStop and AMC, thanks to a series of tweets by Elon Musk. With over 56 million followers on Twitter, Musk has driven traders into a frenzy by mentioning Dogecoin on occasion. 