Investing in cryptocurrency is still a relevant thing. There are many more opportunities and reliable information, but a lot of risks as well. You can find a lot of companies that can update you on the market, provide stock analysis, explain how to work with farms, etc. You can hire a consultant that will help you invest smartly. But in any case, it’s still important to have some knowledge for yourself.
This article will show you how much to invest in cryptocurrency, how to do it smartly and safely. Take it as a crash course and the first step on the way to becoming a successful investor! The crypto world is evolving, improving, and getting ready to become a part of everyone’s life. Choose to be there for it as someone who knows much.
How Much to Invest in Cryptocurrency: The Very First Question
Before learning anything about how to invest in cryptocurrency, you should decide how much you’re willing to invest. The prices are quite volatile, so you may be in for a huge success or a failure that will teach you a lesson.
The bad news is that there’s not one answer that will get you to success right now. One common recommendation is investing 1% of your capital into Bitcoin or another stable cryptocurrency. This is a piece of advice from Chamath Palihapitiya, an avid crypto enthusiast and venture capitalist.
This isn’t too much to alter your way of life and it may bring you quite a profit in the long run. He says that BTC isn’t connected in technical terms with stocks and other assets, so you can protect your financial stability by learning how to invest in cryptocurrency.
Erik Finman, a millionaire teenager who once risked buying a Bitcoin with the money he got as a present, says 10% is a better number. Some other investors claim 30% of the profit from all sources should be invested.
To give you some definite answer, here’s a tip. Calculate what portion of your income you can spare for a long-term investment. Gather some knowledge and find the best time to invest. But don’t wait for too long, because delays cause losses in money.
How to Smartly Invest in Cryptocurrency: Work Smart, Not Hard
The next question is what smart opportunities for investment are. How to smartly invest in cryptocurrency? Most specialists in the field are sure Bitcoin will give you the best chance to rise because it’s the most stable and safe cryptocurrency.
One more way is learning how to invest in cryptocurrency stocks. You may get quite a profit if the company becomes successful. The industry is super competitive, and usually, 1 ICO out of 10 make it. Finding that new special ICO that will grow and establish is difficult and not because there’s a lot to research. It’s mostly because you never know which one will shoot. If even 1 project out of 10 does, you can cover all the 9 failures, but it’s a very rare situation.
Another idea is learning how to invest in cryptocurrency farms. Mining is always worth it, no matter what the price of the crypto is. A lot of miners quit when the crisis comes, but you can catch an opportunity here. Such times are great chances for beginners to enter the big game and win a lot on these countless video card compilations called farms.
Here are some tips on the topic:
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- Always be updated on the changes in the world of cryptocurrency;
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- Read articles by people with rich experience in investment;
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- Don’t invest only because something is hyped;
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- Realize that any investment is risky;
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- Distribute the amount of money among different coins.
How to Safely Invest in Cryptocurrency: Protect Your Investment
The last but not the least, we have to discuss the safety precautions every investor should follow. How to safely invest in cryptocurrency?
You can use platforms like Robinhood to invest safely. The most important aspect here is to make sure you’re using the right set of tools. One mistake may lead to disastrous financial consequences. In general, such thing as safety isn’t in the first line of words that describe investment of any sort. There’s always a risk of losing a part if not all the money.
Don’t settle for one coin. A safe investment is all about backups, so if one coin fails you, there are several other options that may bring you success. Earlier, when Bitcoin was the only known crypto, all the other “Altcoins” were considered shady and not worth attention. Nowadays, though, there’s a market for more than one coin. Some even say that one day, Bitcoin will become a thing of the past and another crypto will become the leader of the market. It
Some tips:
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- Hire a financial advisor if you’re willing to invest a big sum of money;
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- Use online calculators to estimate your revenue and make forecasts;
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- Invest in more than one cryptocurrency so you always have a backup;
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- Consult several successful investors, people usually share information because everyone deserves a chance.
Make Money Work for You
Whether it’s Bitcoin, Ethereum, Ripple, Iota or Dash, you can still make money on it. It’s risky since all the technology involved is still kind of demo, but losing more time will lead to smaller wins in the future. Those who have learned how to get money to invest in cryptocurrency and put some capital there back in January 2015 have got 7,000 times larger capital now. In 5-10 years, that might be you, so look for opportunities everywhere and learn a lot before making a decision.
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