Cryptocurrency: How to actually invest in crypto? – Marca English
What to consider before investing
Acryptocurrency or crypto is a digital currency that circulates without a central authority like a bank or a financial institution.
Unstable economic environments fomented the creation of cryptos.
Cryptos were made to protect you from economic crises or unfair governments that can take away your resources.
“Cryptocurrency is one of those categories of investing that doesn’t have those traditional investor protections,” said Gerri Walsh, senior vice president of Investor Education at the Financial Industry Regulatory Authority.
“They’re outside the realm of securities trading. It’s an area that’s in flux, as far as regulations go.”
Sensationalism generates expectations. Knowing that a crypto investor became rich generates interest among people.
Nevertheless, many people entered the cryptocurrency market with blind knowledge of the matter.
Investing in crypto has the same effect as exchanging coins.
You need to buy cryptocurrency to start your investment. However, do it from verified platforms.
Even Venmo, PayPal, and Cash App will let you buy and sell cryptocurrency, but with limited functionality.
Cryptocurrencies are volatile. Prices go up and down dramatically. Investors should have an emergency fund to cover unexpected costs before investing in assets.
It is crucial to have money for emergencies before buying any cryptocurrency.
Without an emergency fund, you could be forced to sell all your assets with a loss margin.
“Investment professionals suggest that investors keep their exposure low — even for those who are all-in on the technology,” says Marcos Cabello.
“Anjali Jariwala, a certified financial planner and founder of Fit Advisors, recommends that clients allocate no more than 3% of their portfolio into crypto.”
There are a ton of options in the cryptocurrency market. However, you need to understand how cryptos fit your other investments.
Diversifying is a good idea, but investing everything in risky (most volatile than usual) assets is not the safest idea.
It may be worth putting some of your money into safer bets.
Develop a strategy for cryptocurrency investment based on fundamentals rather than social media discussions, or celebrity commercials.
Commit a long-term investment, don’t plan to “get rich” quickly.
Blockchain data firm Chainalysis identified $14 billion of stolen crypto last year.
Fake websites are slightly different from the main domains, and they try to mimic them.
Avoid excessive marketing on a crypto asset.
For example, Kim Kardashian and Floyd Mayweather Jr. were sued in a class action legal process for inflating a coin, and then, the creators disappeared.
© Unidad Editorial Información Deportiva, S.L.U. Todos los derechos reservados.