There are a lot of people looking to invest in cryptocurrencies. Cryptocurrencies started in 2008. Bitcoin was made after the financial crisis mainly because Satoshi Nakamoto was thinking of ways on how to have a currency that isn’t dependent on major economies. The result is the use of blockchain technology. Ten years forward, you now have blockchain tech being used in different scenarios. In fact, even JP Morgan is now using blockchain technology and even made their ownstablecoin.
Now, there are people who are investing in cryptocurrencies. A lot of stay-at-home parents are now using their money to buy cryptocurrencies. However, you also need to be aware of how you spend your resources and where you should invest it. Here is a simplified guide as to how you can invest with minimal risk involved.
Invest in a good wallet
You want to make sure that you don’t keep your cryptocurrency in an exchange. This can be very problematic especially when there is a hacking incident. The reality is that you will never know when exactly this will happen. What you can do is to be sure that your funds are safe.
Know your crypto
There are a lot of cryptocurrencies out there. In fact, there are thousands of cryptocurrencies today. However, you will need to do a lot of research. Aside from reading the news and staying on different subreddits, you also have to understand that you should take the time to read the white paper. From here, you will be able to decide which cryptocurrency is right for you.
But of course, there is always the risk. You don’t want to just put everything in one crypto on most occasions. In fact, even crypto experts aren’t really sure whether or not Bitcoin will remain as the top cryptocurrency in the future.
Invest what you can lose
A lot of people today invest more than what they can lose. And for people who are married, this can be a source of a huge problem. What you want is to have a consensus on what you can lose. A lot of times, you want to be able to diversify your investment. And therefore, you want to just invest a small portion on cryptocurrency. And why should you invest a small portion? Keep in mind that Bitcoin lost around 80% of its value in a matter of 12 months. Now, unless you really believe in the technology and you have a plan B when it comes to your finances, you shouldn’t be banking completely on cryptos.
Know when to buy and know when to sell
You have to understand that you don’t have to stick to crypto investing for years. In fact, it is possible that you are just there for the quick burst. If you are just looking for a quick profit, then you need to know when to buy and when to sell. However, keep in mind that this can be quite stressful. But as a stay-at-home-parent, you have the luxury of monitoring the industry. You can also set alarms and be able to trade whenever there is fluctuation in the price.