If you’re curious about cryptocurrency, you’re not alone. This still slightly mysterious market has been fueled primarily by the most visible and successful currency available, Bitcoins. Prices for individual bitcoin have been soaring, and while Business Insider reports that 40% of the bitcoin market is still owned by just 1,000 people, interest in this new form of investing is growing rapidly across the globe. So, how should you get started if you want to invest in crypto? Read on for tips and get ready to invest in the future!
Decide What You Can Afford to Lose
There’s varying advice available regarding the “right” amount to invest in crypto, but your safest bet might be to take the advice of established billionaires and only invest what you can truly afford to lose. While the cost of bitcoin has been skyrocketing lately, that doesn’t mean that you should take all of your savings from your account and invest it in this new, highly volatile opportunity. Instead, consider how much money you would be okay with taking a risk on, and make your first investment using that pool of cash. If you are in decent financial shape and have a few months of expenses saved up, that amount will be different than someone just starting out with less than $1,000 in their savings.
Choose Your Preferred Cryptocurrency
While Bitcoin is certainly the most known cryptocurrency, it’s not the only currency out there. You may decide to start with a known quantity like Bitcoin, but also diversify your investments to include some other cryptocurrencies, which are part of a growing market that appears to be here to stay.
Make Crypto Part of Your Overall Savings Plan
Once you decide how much you can invest and what type of cryptocurrency to buy, it’s important to make sure that your new crypto investment is not your only investment. A solid savings plan should have a mix of assets, including everything from stocks, bonds, certificate of deposits, and traditional savings accounts. As a general rule, it’s great to work to save 20 percent of your income per year. No matter what your personal savings percentage, make crypto just part of your larger savings picture to ensure that you don’t keep all your eggs in a single basket.
Find a Trusted Exchange Platform
Ready to buy? The final step is to select a trusted exchange platform on which to conduct your purchase. Coinbase has been recommended widely since it offers a small range of cryptocurrencies (Bitcoin, Ether, and Litecoin), and because it offers both ease of use as well as a level of trust in its security measures. Coinbase is also popular because it has a user friendly mobile app that makes investing as easy as tapping a few buttons. You’ll need to be prepared to link your debit or credit card to make the purchase, and you may require up to 5 days to complete the purchase if you are moving large amounts of cash. From the app, you’ll have a clear sense of exactly how much cryptocurrency your dollars will buy you, and then you can continue to monitor and/or sell your investment using the app.