Should Crypto Be Part of Your Investment Portfolio
Author: Elle Miller
If you’re exploring the internet asking these questions:
What is Bitcoin?
How to buy crypto?
Will I get scammed?
…then you are heading in the right direction but you probably feel like you are not on the right track. For a crypto beginner, knowing where to begin and where to go to get information that you can easily understand can feel like an uphill battle.
One of the biggest questions you probably have is: should I even invest in crypto, should it even be part of my investment portfolio?
Instead of diving headfirst into the crypto space, it’s important to first understand what you’re getting yourself into.
Most people are lured with the promise of big gains, “to the moon” profits and the talk of overnight millionaires.
Others are totally scared off with the news of scams, plummeting prices, and uncertainty in this new emerging space.
While all of these are realities actually happen in any financial space, it’s important to understand the big picture and put it all in context… and focus on how crypto relates to you.
The thing is, your investment strategy and financial journey is one of the most personal decisions you will ever make. Everything depends on what you are trying to achieve, what your goals are.
If you’re just beginning to explore digital currencies, here are the four most important things you should know the answer to before buying crypto:
- Why do you want to buy crypto?
- What is your risk tolerance?
- Where — and how — do you plan to buy cryptocurrency?
- Which cryptocurrencies would you buy?
These are the questions that will frame your research, strategies and investment planning.
It’s so very important to have a strategy before you put money into crypto - it will help you avoid the usual mistakes made by beginners in the space.
So, if you’re looking at starting to invest in crypto here are a couple of tips to keep in mind:
- Clarify you intentions, make a list of what you are trying to achieve
- Evaluate your ability to take the risk - do you have enough knowledge to understand what you are doing in the crypto space
- Make a buying plan and stick to it - how much you’ll spend, what you’ll spend it all, what are your limits etc.
Remember, a goal without a plan is just a dream… but a goal with an action plan is a dream come true.
If you want to discuss how to answer the four questions and find out more about where to get the information you need without the overwhelming feeling, check out decryptingcrypto.com