Step-by-Step Guide: Investing in Cryptocurrency
Welcome to another episode on Crypto for Newbies. In our last episode, we showed you how to Analyse Crypto Coins With 5 Reliable Tips. In this episode, we’ll show you an easy way to start investing in cryptocurrency.
If you didn’t already know, cryptocurrencies can’t be purchased at a bank. In the world of financial institutions, cryptocurrency is still considered “exotic”. Because it is poorly understood and practically uncontrollable, most financial institutions are hesitant to engage with it. As a result, cryptocurrency prefers to operate within its own network.
If you’re looking to start investing in cryptocurrency, then this general guide is for you. Read on!
1. Cryptocurrencies should only account for a small portion of your overall portfolio
You’ll need to select how much of your portfolio you want to put into crypto ahead of time. It can be tough to make a sensible judgment in light of recent notable developments in the price of Bitcoin.
However, remember that all investing is governed by a mix of fear, courage, and a little bit of greed. Given the recent crypto advancements, it may be hard to keep the greed portion in check.
Whatever the case may be, bitcoin should only make up a modest portion of your overall portfolio. It’s entirely up to you how much you spend. However, investing more than 10% or even 5% of your income should be avoided.
When it comes to investing, keep in mind that bitcoin isn’t the same as a stock. It pays no interest or dividends, just like gold and silver investments. To the extent that cryptocurrency will be a good investment, its price must rise dramatically — and stay there for an extended period of time.
Learn more: Cryptocurrency Investing – An Introduction
2. Select a Cryptocurrency
One of the true complexities of cryptocurrencies is that there are hundreds, not just one. The problem is made even more difficult by the fact that new ones are being introduced all the time. Remember that hundreds of cryptocurrencies have already come and gone. So, choosing the right one to invest in might be harder than you’d think. You’d need to analyse the crypto you have your sights set on using these 5 tips.
As of December 2021, Bitcoin is the most popular cryptocurrency. It’s also the cryptocurrency that’s attracting the most attention and money. Bitcoin appears to be the most trustworthy of all the cryptocurrencies accessible, owing to its dominant position. So much so that it has nearly become synonymous with the term “cryptocurrency.”
The connection is intriguing because, while the media has been closely tracking Bitcoin’s price activity, some cryptocurrencies have performed even better. So, don’t limit yourself to Bitcoin alone just because of its dominance.
The information provided in this article is intended for learning purposes and should not be regarded as financial advice. Naija.FM shall not be held accountable for any losses incurred from trades or investments gone wrong. We make no guarantees or assurances about the accuracy or timeliness of the information provided here. As each individual’s circumstances are unique, you should always consult your financial advisor for professional assistance before making a financial decision.