For Washington Wizards professional basketball player Spencer Dinwiddie, investing in cryptocurrency is a layup.
He went on to say that cryptocurrencies are a place where investors can multiply their initial investments tenfold, as opposed to earning 7% to 10%, as many expect to make in the stock market over time. This is important for building generational wealth, the NBA player said, adding that he holds bitcoin, as well as other digital coins.
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The assets have steadily gained support as digital coins skyrocket in price. On Wednesday, bitcoin hit a new all-time high of nearly $69,000, putting it up more than 130% year to date.
Of course, cryptocurrencies aren't without risk. The asset class has been highly volatile on its way to record highs, and choppiness is likely to continue.
"If you have a long-term investment strategy and you have a day-to-day job that can get you through five years, 10 years, then look at this as a very long-term type of thing because this asset class isn't going anywhere," said Dinwiddie. "There will be billionaires made out of this market."
Advice for investors
Tyrone Ross, CEO of Onramp Invest, agrees that cryptocurrencies present a great opportunity for the underserved.
Still, he cautions that cryptocurrency isn't for everyone. Instead, he recommends that new investors take a step back and learn about them before diving in.
"If you take the time to learn and read and educate before you allocate, it's not as scary," said Ross.
For people who have done the research and know they want to invest, Ross has a tip for deciding how much money to put into a digital coin: Find the most expensive restaurant in your area.
"See how much it would cost for your family to go dine at that restaurant," said Ross. "Then buy that amount and that amount only."
Using a benchmark like this ensures you aren't investing money you need for your essentials, such as paying rent or buying food. If your investment goes to zero, you'd still be able to meet your basic financial needs.
He also recommends setting goals for selling at the very start of your crypto investing journey.
"If I'm buying something, I should know when I would be comfortable selling," he said.
Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.