If you are considering joining the crypto world but need help knowing where to begin, this article will help you. Many people ask how much to invest in cryptocurrency. Answering this question, we should remember that the crypto market is the most volatile compared with other financial markets, which means it is the riskiest. Therefore, investing all your funds in one digital asset is not logical at all. Experienced investors have concluded that 10% of the whole month's budget is the maximum worth spending on crypto. If you spend more, you will be unable to think with a cold head, and emotions will guide your actions, which is the worst scenario that always leads to failure. So, allocate at most 10% and make sure that if you lose this sum, it will be okay.
What Does Investment Mean?
Investment refers to the practice of purchasing digital assets and holding onto them for an extended period, which could last for weeks or even months. This method is less stressful and allows for potential profits in the cryptocurrency market without the need for constant price monitoring or opening and closing positions. Instead, you simply buy coins and store them in a secure location until significant market changes occur, such as the next bull rally. At that point, you can sell your currencies at a higher rate and potentially make a fortune.
In summary, investment is a low-stress approach that does not require frequent position openings and offers flexibility in terms of timing. Trading, on the other hand, requires more significant involvement and a deeper understanding of various strategies and their workings.
How to Invest in Cryptocurrency?
There are some ways to buy crypto:
Address a crypto broker
Use a cryptomate
Use a simple exchanger
Use a cryptocurrency converter.
The latest option is the easiest. An important thing is picking a converter, for there are so many of them on the internet. Consider using large and reliable exchanges, such as Coinbase, WhiteBIT, and ByBit. They have a good reputation and were not noticed in any schemes.
What Crypto to Invest in?
One of the main principles in crypto investments is diversification. Try to buy mega-cap coins such as BTC, XRP, and ETH, as well as large and middle-cap assets (Solana, Polkadot, etc.). Remember that the market is very volatile, and it is impossible to foresee the future here. You can rely on charts and make your forecasts, but at the same time, something may affect the whole industry, and you can’t help it. So if some coins will drop and cause you losses, others will skyrocket and bring you a fortune. Learn carefully about each project you invest in, and better rely on your own research rather than reading Internet price predictions.