2019 is the year that is going by with lightning speed. It is already October and we are already close to the year 2020. It is time to dust off the previous new year’s resolution list and work on it. If crypto investment is on that list, this is the best time to start. Explore the idea of investing in cryptocurrencies.
Fortunately, the cryptocurrency market is no longer limited to just bitcoin. Statistics say that there are about 1600+ cryptocurrencies in the market. Imagine going through all of them to pick the most promising cryptocurrencies, which is not an easy thing to do. Don’t worry though, we are here to help you.
The Idea Of Investing In Crypto
The idea of investing in crypto is nothing new, but it’s something that has been underestimated for so long. Outside the crypto community, the idea of cryptocurrency as a form of investment is not really popular compared to more traditional industries like the real estate market.
Of course, if you plan to get involved in cryptocurrencies, the wise plan to do it is to have some hedges in other forms of investment as well. You should not just put all your money in cryptocurrencies, considering how volatile the nature of the market is. The ideal way to treat cryptocurrencies is to see them just like how you see any other high-risk investments. Keep in mind that cryptocurrency investment could be even more volatile than everything else. It is not uncommon for the likes of Bitcoin or Ethereum to go up or down 10% within just a few days.
Do Not Invest More Than You Can Afford To Lose
Always remember one golden rule of investing. Do not invest more than you can afford to lose. There are many sad stories about cryptocurrency investors where they even had to borrow some money to invest in Bitcoin. You should never get your inspiration from these people. It’s quite important to understand that crypto investing is something with high risk, high gain nature.
While it’s true that you can get 50% or even 100% ROI within a short period of time (i.e. 6 months time), but you can also lose 50% of your money easily. If you appreciate your own hard-earned dollars, you should not put too much of your own savings into cryptocurrency investment. Use the 80-20 rule or 60-40 rule, which means you can put 80% on safer investments in the traditional market and only 20% on cryptocurrencies. If you are willing to take more risk, you can put 40% of your savings into crypto.
So, How To Pick The Right Crypto To Invest?
It is difficult to pick the best cryptocurrency to invest in from all the coins in the market. One should look for a good performing successful cryptocurrency. There are no definitive parameters to define the success of a coin. There are some common ingredients in making a successful cryptocurrency like:
- Application of the coin
- Ease of buying.
- Demand for the coin.
- Strong community.
- Real world application.
Based on your investment goals and market analysis, you should pick the best cryptocurrency to invest in. Also, keep in mind that many cryptocurrencies are not always available to purchase directly with fiat. You might need to buy Bitcoin or Ethereum before you can get into these less popular coins.
To start, you might want to go to Coinbase. This is the website where you can exchange your fiat directly to different types of cryptocurrencies. For those who don’t have access to Coinbase, you can try alternatives like LocalBitcoins, Kraken, or Gemini. After you complete your first purchase of cryptocurrencies with your fiat, you can withdraw them to your own crypto wallet. We recommend multi-crypto platforms that are easy to use, like Exodus, Monedero, or AtomicWallet.
Switchain is an instant non custodial cryptocurrency exchange. Our user user-friendly platform makes trading crypto easy and fast. We work with different cryptocurrency trading partners to guarantee the best cryptocurrency rates to our clients.