Know Before You Invest

There are many things to consider before investing, not only with crypto but also with stocks. Make sure to have a back up plan, diversify your portfolio, and be informed on what you are investing in!

Be Aware

It's very important to focus on the future when analyzing an asset such as bitcoin, Dogecoin, Ethereum etc, since crypto has grown immensely since its birth, new investors cannot solely focus on the past market.

First time investors must be extremely cautious of the volatility of cryptocurrencies. They are one of the most volatile assets to date with the quickness of dropping prices. It is possible for inexperienced investors to get wrapped up in buying high and selling at low prices when getting scared of the volatile market which will result in large losses.

Set Standards to Mitigate Risk

The potential risk in cryptocurrency must be managed due to its volatility. There can be extreme losses if there are not specific measures are set in place to succeed. This can differ based off of short term versus long term investments the same way it does with stocks. For example, short term investors should monitor the market with strict rules on when to sell such as when the price drops to maximum 10%. Long term, investors should keep the investment without selling no matter the price since over time, it will certainly grow.

Importance of Keeping Reserves

It is important to start SMALL and only invest what you can afford to lose. Keeping a strict reserve of money in savings when making a decision to invest is essential to financial safety.

Royal, J. (n.d.). How to start investing in cryptocurrency: A guide for beginners. Bankrate. Retrieved January 18, 2022, from https://www.bankrate.com/investing/how-to-invest-in-cryptocurrency-beginners-guide/