As days go by, people are becoming more and more curious about cryptocurrency. Despite the cryptocurrency industry being new to this modern-day technology, people have been trying it out. Most individual investors invest without doing research and assessing their assets. One of the main reasons that people jump into investing is that they are expecting a profit instantly; yes, there are a lot of success stories as of now on how certain individuals created a fortune by investing early in cryptocurrency. But people should always remember that cryptocurrency is highly volatile, and it comes with high risks. Some reliable platforms with expert help such as the Immediate EDGE require an initial investment of $ 250 upon registration.
Like Cooper Turley, who began investing in cryptocurrency way back in 2017, he had invested in Bitcoin and Ethereum, which are the two most popular and high-value cryptocurrencies in the market. Turley was made a millionaire by his investments in the two mentioned cryptocurrencies. His investment reached a seven-figure, in which he got 90% in the last two years of investing. Although Turley did not disclose the exact worth of how much he invested before, he told CNBC that it was not a lot at that time. That time he started investing. He was still a student, working a part-time job, and he was just putting in a few hundred dollars from time to time.
Turley’s initial reason for investing in cryptocurrency is not the profit, but he saw potential with Ethereum because of its blockchain technology they Turley believes can help the music industry and its artists, as for example, smart contracts can be utilised to the payments directly to the artists.
With the success and stories, investors get the hype to invest immediately because of the fear of missing out. Still, financial experts in the industry still warn and give advice on the cryptocurrency’s risky investment, and that one should just invest the money or asset that they can afford to lose. The specific amount one can afford to invest in cryptocurrency varies from person to person. If one is interested in investing, one should consider their own assets. Also things like, high-interest debt, retirement fund, emergency money, and miscellaneous fees that you put out on day to day living should be considered before investing in cryptocurrency.
The 5% rule in Investing
There is this golden rule where experts have been telling new and old investors about cryptocurrency. One’s investment should just be 5% of their current net worth, and those adventurous ones can try going up to 10% of their current net worth.
For example, Bitcoin five years ago was only worth $327, and as of now, Bitcoin’s worth is almost $10,500, which means it had a 3,111% increase in its value or 622% annually as well as the top cryptocurrency in the market, which turned out to grow their value. With this, let us say you had $10,000 five years ago and chose to invest in Bitcoin, as the $500 being the 5% of your savings, that saving of yours would turn out to be worth $15,555 today.
Long term Investment
Cryptocurrency investments also somehow require you to hold to your investment for a certain period of time before you can see your investment growing. With cryptocurrency, its price may grow or fall wildly day-to-day, and those who are new to the cryptocurrency industry tend to panic selling their cryptocurrency when the price drops. It is one of the most common mistakes for most traders, and when the value wildly goes up again, they’ll be regretting it, and it will be harder for them to get back their investment.
Techniques in Investing
Going all in is also observed on most of the investors. This would result in pulling out the investment right away to pay for the day to day needs. When this happens, the fees on every transaction you made in investing and pulling out can be greater than the expected profit from the investment.
One great technique for investing in cryptocurrency is to invest little by little. Even just the 5% of your net worth would be enough to start, and after paying bills and computing your miscellaneous expenses for the following two weeks, you should assess if you can put another 5% on your cryptocurrency investment. In this way, investors do not compromise their own way of living and investing at the same time.
Another great tip for investing in cryptocurrency is not to put all of your investment on one certain crypto. Just like how financial advisors suggest getting different stocks in the stock market, diversification is also key and healthy for an investor’s cryptocurrency portfolio. Since each cryptocurrency has different values from time to time, their risks and volatility also vary. So to be safe, if ever one of your chosen cryptocurrency investments gets a low value, you will still have others that you can gain profit from.
Cryptocurrency is a great way to invest, although there are still a lot of options to choose from. It would be great to diversify your assets based on your net portfolio and your own desires as well; being able to balance everything should be healthy for you as well. Every investment comes with its own price and risks as well.
Cryptocurrency is a great way to invest, although there are still a lot of options to choose from. It would be great to diversify your assets based on your net portfolio and your own desires as well; being able to balance everything should be healthy for you as well. Every investment comes with its own price and risks as well. However, if you think investing not just in cryptocurrency is a waste of money, you should think twice because a lot of stories and first-hand experience in investing in cryptocurrency is shared even on social media websites.