Cryptocurrency with The Happy Hour Ladies
On the last Friday of the month, I host the Happy Hour on the podcast where I gather great friends with me to drink cheap drinks and talk about money topics. April is Financial Literacy Month or what we like to call our favorite time of year at The Financial Gym. An entire month that’s focused on the importance of financial literacy. I always say that financial literacy is just as important as regular literacy and while there are so many resources for us out there to get better at it, I still feel as though we have a financial literacy crisis in the US. Every day new clients come to the Financial Gym feeling ashamed that they aren’t as adept in their personal finance knowledge and my response is always the same. Why should you feel confident? Most of us didn’t learn about personal finance at home, at school, or on the job, yet the second we start receiving paychecks, we’re responsible for managing our money and navigating the world of personal finance.
Today on the Happy Hour the ladies join me to talk about cryptocurrency and whether or not it’s something you should focus on in your investment portfolio. As you can imagine, there are a lot of opinions here.
What are we drinking?
Melanie from The Mental Health and Wealth Show - Ginger Tea
Kassandra from kassandradasent.com - Ginger Tea w/ Lemon
Joy, Head of Trainer Academy at The Gym - Glass of Rose
Shannon - Nighthawk Bota Box Wine
Podcast Notes
Cryptocurrency is here to stay and will only become part of the more regular personal finance space and conversation.
It started in 2008 from the desire for decentralized banking, and currently, there are over 12,000 different kinds of cryptocurrencies.
It’s become more common and casual, as you can now use crypto to pay for certain things.
There is a lot of FOMO in the crypto space, but there are zero protections and regulations. With banks and investments, the money is insured, but there is no version of that with cryptocurrency.
There is a huge risk, and it can be compared to gambling.
Shannon asks how the others feel personally about crypto. She was on a panel recently and has reservations about it. She doesn’t totally understand all of it and there are red flags.
Kassandra: She feels like it is relatively new and the space is evolving. She’s investing, but it is less than 5% of her overall portfolio. She knows there is potential in crypto and it will become a more regular part of the personal-finance conversation.
Melanie: She describes herself as crypto agnostic. She doesn’t have enough information to make an informed decision about crypto. Just because she’s not comfortable investing in it right now, that doesn’t mean she won’t in the future. She does worry about being stubborn and not being prepared for the future, but not giving into FOMO.
Joy: She started a Coinbase account because they have classes that will pay you in crypto for taking them, though she hasn’t taken any of the classes yet. She has other buckets and goals before investing in crypto.
There are huge environmental impacts of cryptocurrency. It has always been challenging to invest with your morals, and crypto adds another layer of complexity to that.
There is a lot of money laundering and scams that are possible with crypto. Always be diligent and do research before investing. This new type of technology is the perfect opportunity for scams.
Thinking about NFTs
Joy puts NFTs in the same category as fine art or fine wine. They’re a digital asset, and she can see the utility in them but isn’t investing in them yet.
NFTs are more interesting to Kassandra than cryptocurrency. From a musician’s point of view, there is an opportunity for crowdfunding and creators getting paid through NFTs. There’s a lot out there to sort through, but there is potential in the space.
Melanie enjoys seeing the art on Twitter but hasn’t gotten too involved with NFTs yet.
You can be a direct supporter of the arts without having to be a multi-millionaire. People can really get creative with NFTs.
Final thoughts:
It's important to keep crypto in perspective with the rest of your financial picture. What are your goals, and stick to the plan. There is some excitement, but be mindful of anything that is based on FOMO or advertised as a way to get rich quickly.
If you want to invest in crypto, do the research first! Make sure your other goals are taken care of first and invest moderately.
Crypto is going to become a more regular part of the financial landscape. There are benefits to getting involved, but always be careful and only invest money you’re comfortable losing.
If you want to learn more about Cryptocurrency, check out these episodes of Financially Naked, Stories from the Financial Gym:
Cryptocurrency Decrypted Part 1
Cryptocurrency Decrypted Part 2
Takeaway: My biggest takeaway is that no matter how you invest your money, there are basic building blocks and principles that should be applied across the board. With a responsible framework in place, you can invest in whatever you like.
If you have any topics you would like me to cover on this podcast, or if you’d like to get in the financially naked hot seat, I encourage you to email me at Shannon@fingyms.com, or join the private Martinis and Your Money Facebook group, and let me know what you want to hear.
The Financial Gym has so many ways that you can work with us. If you’re looking for a career shift, we’ve started a Financial Trainer Certification Program where you can have the greatest job in the world. We have online courses for you to learn on your own. If you’re looking for financial products like a new credit card or high yield savings account, we have all of our favorites on the BFF Approved Products Page. And finally, if you want one-on-one coaching with a compassionate and empathetic person, our Financial Trainers are here to help you and remember, Martinis and Your Money listeners get 15% off of one-on-one Financial Training at The Gym. We’re here to meet you wherever you are on your financial health journey.