ScienceLovers - It is undeniable that investment has always been an important thing. If in the past the popular form of investment was th...
ScienceLovers - It is undeniable that investment has always been an important thing. If in the past the popular form of investment was the purchase of land or houses, now with advances in technology investment can be done via smart phones. You can buy stocks or even cryptocurrencies just through the app.
The popularity of cryptocurrencies seems to be growing. More and more people are interested in dipping their toes in this digital currency investment.
For those who are new to investing, you may still be confused about how. Check out this article to find out the right way to invest in cryptocurrencies!
Crypto Investment Needs a Plan
Just like when you invest in other instruments, investing in cryptocurrencies also requires careful planning. Determine first whether the investment you are making has a long-term or short-term goal. This will have an effect on the type of crypto asset and the way in which you invest.
If you have long-term goals, it's a good idea to use the dollar cost averaging or DCA technique. This technique is similar to saving, where you deposit a certain amount of money each month, either when the market price is going down or up.
Find the Right Platform
Currently, there are many cryptocurrency investment platforms that you can find. However, make sure you invest in a platform that trades crypto legally. In addition, pay attention to the features offered by crypto exchanges. Make sure the features and services provided match your needs.
Use Cold Money
When you invest in crypto, make sure the funds you use are cold money. Cold money is an amount of unused money, where if the money is lost it will not affect your financial condition. This is important to do because investment has risks.
You can get a lot of profit, but you also have to face the risk of loss.
Invest Slowly
Start slowly. Don't put your money in a lot of one asset at a time.
It's a good idea to allocate slowly while looking at the performance of the crypto assets you invest in. This will minimize your losses if at any time the performance of the crypto asset drops.
Manage Portfolio
Every investor must have a portfolio and want a good portfolio. In this case, there are no fixed rules on how an investor needs to manage his portfolio because everything is in accordance with the characteristics of investors.
However, there are several ways you can do to have a more stable and secure portfolio, namely by dividing the investment percentage in different assets.
You can put 60% of your investment in major cryptocurrencies that have large caps, such as Bitcoin or Ethereum. Cryptocurrencies like Bitcoin and Ethereum are already more trusted and stable.
Then, you can put 20% of your investment in stable coins to become a reserve fund. If you are looking for a better rate of value growth, you can put 10% of your investment in altcoins. For the other 10%, you can put on trending cryptocurrencies to seek faster profits.
You can overhaul this percentage and adjust it to yourself. However, the main goal is to minimize losses if one of the assets is impaired.
If you put your entire investment in altcoins, for example, then when the altcoins are falling, you can suffer huge losses. On the other hand, if your investment is spread over several types of assets, when one asset falls, the loss you will get will not be too large because there are other assets that provide profits.
Every investment has risks. Therefore, make sure you understand it before starting to invest.
Also deepen your knowledge of cryptocurrencies. Having more knowledge about crypto investing can help you set up a better investment strategy.
In addition, even though crypto investing looks tempting with all the huge profits it has to offer, don't be complacent and keep an eye on your steps. Avoid making emotional decisions and do some analysis before selling or buying a crypto asset.
