Crucial Tips for Investing in Cryptocurrency
Crypto provides for a fascinating investment opportunity in our modern world, but don’t invest without knowing what you are doing. Here are 3 crucial tips for investing.
The role of cryptocurrency continues to expand drastically in our world. We have seen since the emergence of Bitcoin as an asset in 2009that the value of almost all crypto on average has grown exponentially due to its location-neutral and bank-free platform. Not only is its practical value growing, but it also has proven to be an intriguing, yet risky investment opportunity. Here are a few tips if you are interested in investing in crypto.
Although the major coins in the crypto market have consistently gone up over the past 5 years, it is important to realize that crypto is not a monolith, with each coin operating on its own system that make it capable to entirely different fluctuations. Before making significant investments, understand this and research how these could project in the future.
Have a Diverse Portfolio
In May, a “memecoin” called Dogecoin reached near $0.69 and made investors a fortune. Seeing results may make smaller and more volatile coins tempting to invest in. However, for every Dogecoin, there are hundreds more smaller coins which have failed drastically. This makes this strategy essentially gambling. Instead of putting all your eggs into one basket, make sure to invest into multiple assets, including more proven crypto such as Bitcoin, Ethereum and Litecoin.
Although there are similarities, it is important to recognize that crypto is NOT the same as the stock market. The past few years show us that cryptocurrency is headed in a general positive direction, but that does not mean that there haven’t been significant dips along the way. Do not stress over a bad day on the crypto markets in the same way you would with stocks, as with crypto it is typically not representative of any larger trends. Treat this as a long-term investment, not a short-term way to get rich.