Dave Ramsey: Is Crypto Putting Your Money at Risk? 4 Reasons To Stay Away

Not everyone is on board with the crypto frenzy. In fact, financial guru Dave Ramsey still does not subscribe to the hype of this relatively recent investing trend.

The bestselling author and founder of Ramsey Solutions, a company that educates and provides financial counseling, warns against investing in digital currency. In an article posted on its website, the company strongly advises to not get involved with crypto.

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Regarding the volatility of the crypto market, Ramsey wrote, “There’s no one reason for crypto’s dramatic crash and burn. But the biggest pieces of the crypto crash puzzle are inflation, recession fears, more regulation and government crackdowns on crypto mining, and fading confidence in cryptocurrency investments. When you put all those pieces together, it spells trouble for anyone who bet the farm on crypto.”

Here are a few key reasons why Ramsey warns against investing in crypto.

It’s Way Too Much of a Risk

Ramsey is clear about avoiding crypto and not getting tempted by the buzz. He said, “Crypto is not a safe investment. You could lose your shirt (and pants) messing around with crypto. Steer clear … Crypto is risky business.” 

Ramsey Solutions acknowledged that people have made money from investing in digital currency — but at high odds. “Yes, some people made lots of cash investing in crypto, but it’s all based on speculation — which is just a step above gambling.”

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Crypto Is Very Volatile

“Crypto’s value swings way up only to come plunging back down, and you never really know what you’re going to get each day,” said Ramsey’s staff. “Someone sneezes and the price drops! And unlike stocks that rise and fall based on a company’s performance, crypto goes up and down based purely on speculation.”

Unproven Rate of Return

Investing in crypto has been compared to the Wild West by Ramsey. “You can’t figure out the changes or calculate returns like you can with growth stock mutual funds. There just isn’t enough data, or enough credibility, to create a long-term investing plan based on cryptocurrency.”

Nobody Really Knows About Crypto

Ramsey Solutions has pointed out that crypto has a secretive backstory, and it’s hard to believe any “experts” in the field.

The company said, “Crypto lives up to its name in that it’s pretty cryptic. Think about it: Nobody even knows who founded Bitcoin! Only a small percentage of people in the world really understand the blockchain technology crypto is based on. And ignorance makes you vulnerable.”

Final Take To GO: Better Options

The bottom line is that instead of taking a chance on crypto in 2025, Ramsey Solutions suggests putting 15% of your income in growth stock mutual funds. However, Dave Ramsey is known for his hard stance against debt, so only take this advice if you’re out of debt and have a 3-6 month emergency fund, as well.

Caitlyn Moorhead contributed to the reporting for this article.

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This article originally appeared on GOBankingRates.com: Dave Ramsey: Is Crypto Putting Your Money at Risk? 4 Reasons To Stay Away

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