Cryptocurrencies have been in the news a lot this year. There have been wild moves in the prices of Bitcoin, Ethereum and Dogecoin, Elon Musk has tweeted about them, Coinbase has gone public, CBN has stopped banks from serving crypto companies yet through it all, everyone is still trying to get their hands on crypto. It’s crazy and fun and interesting from an investment point of view.
For those of you who have invested or would like to invest in cryptocurrency, but find it difficult to deal with the extreme rise and fall of the prices in your portfolio, we are here to give you tips on how best to handle crypto investing.
First, only use a regulated and trusted exchange. Some of the common ones are BuyCoins, Binance or Bundle (there’s a trend there right?).
Secondly, understand your risk appetite. Don’t invest too much of your money into crypto as it is a volatile asset unless you’re okay with watching the value of your holdings go down 90% without panicking and selling. The best investment plan is the one you stick to. Use dollar-cost averaging to increase your holdings slowly so you don’t take on too much risk all at once.
Lastly, take a portfolio approach to investing. Holding crypto as your only asset is too much exposure no matter your risk appetite or tolerance. Crypto should be the icing on the cake for your investments and the bulk of your investments should be in stocks, bonds, real estate and a slice of cash. That way, you’re balanced and can watch your investments grow no matter what the crypto markets are doing.
To get access to a diversified portfolio of stable and high-quality USD investments across stocks, real estate and bonds proceed to www.rise.capital and sign up or download our Risevest app on App/Play Store.