How to Invest in Cryptocurrency?
So, are you ready to begin your bitcoin investment journey?
1. Begin small
Like the stock market, the crypto market is very volatile, which means values will fluctuate wildly. Therefore, it is only prudent to invest in cryptocurrencies after ensuring that you have sufficient liquid cash to last at least six months without incurring any obligations. Once you’ve figured this out, start investing in stocks (if you haven’t previously) to gauge your risk tolerance. Set aside a portion of the money to invest in cryptocurrencies once you’ve proven you can manage the ups and downs. Limit your investment to 5-10% of your income if at all feasible.
2. Decide on a Cryptocurrency
Yes, there are many cryptocurrencies on the market at the moment, each with a distinct pricing point. However, it is not advised to jump on the bandwagon and invest in five different tiny cryptocurrencies. To choose the best cryptocurrency, you’ll need to do a lot of research. Keep an eye on what’s going on in the market, compile a list of the top five performing cryptocurrencies, and track their progress. Bitcoin is now the world’s largest cryptocurrency and the most trustworthy, ahead of Ethereum, Ripple, Litecoin, and Binance Coin. Here’s why this is the most crucial step in your investment process. Many cryptocurrencies that entered the market in the last decade have either plateaued or vanished altogether. It means that your $100 investment might turn into a big fat zero in the blink of an eye.
