Crypto is here and it’s becoming more and more of an accessible and popular investment.With all the hype, you might be wondering if should you buy cryptocurrency?
Let’s rewind for a second. It’s important to know that despite the word currency being in the name, crypto is still largely unavailable to use the same way we use cash and cards.
Can you use crypto as actual currency to buy your $17 Sweetgreen salad? Well no, but it may make a good additional to your investment portfolio.
Should You Buy Cryptocurrency? What to Know First
But should you buy cryptocurrency? Are you ready for the world of crypto investing and is crypto investing ready for YOU? Can you handle the ups and downs and do you understand how the process all works?
Here’s how to decide if should you buy cryptocurrency.
How Cryptocurrency works
We break down the details of exactly how crypto works in this article, so head there for the deep dive.
To sum up: crypto is a decentralized form of currency, currently main being used as a way to invest. Very few places accept crypto as an actual form of payment.
People are making big money in crypto! And of course, people are losing big money in crypto.
There is a lot of hype around crypto, and I can say with 100% certainty that hype is never a good investment strategy.
What to know before investing in crypto
You need to understand WHAT you’re investing in, first of all. Never, ever buy something that you don’t understand.
When you invest in stocks, for example, you should know you’re buying a tiny piece of ownership in an existing company.
When you invest in real estate, you should know the local area, the cost of property taxes and your mortgage costs.
And when you invest in crypto you should know:
Which coin you’re buying and and it’s current risk profile
How crypto plays into your overall investment strategy
Crypto is still a very, very volatile investment market. That means you need to be ready for high highs and low lows. Can you handle it if your coin experiences a 50% drop? That’s happened to Bitcoin, the most stable coin out there.
It’s essential you know your own risk tolerance before you opt in to crypto. Remember; hype isn’t an investing strategy.
how to get started investing in cryptocurrency
In our YouTube crypto series we show you through WHICH questions to ask yourself to see if you’re ready to invest in crypto.
Then, we walk you through different platforms you can use to invest, which information you’ll need to get started, and break down how the crypto market moves so you can pay attention and make that money.
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Hi! Your article offers valuable advice for individuals considering investing in cryptocurrency. Thanks for emphasizing the importance of understanding what you’re investing in and being aware of the risks involved, which is crucial for any form of investing. While you highlighted that hype should not be a driving factor in making investment decisions I think that is quite the opposite. I mean it should drive our investment decisions but with negative correlation – for example, if there is a hype on Bitcoin, then be extremely careful and either wait with investments or sell! You can also bid short! In other words, do exactly the opposite of the rest (mass)!