As you turn the corner into a new decade, your future always comes into question – especially your financial prospects. The end of the year can bring up questions like: is it time to quit my job? what can I do to increase my savings? As you ponder these, don’t forget to consider investing in what some call the future of currency as we know it.
We’re talking about cryptos, which by now may seem like a burned-out topic, but in financial terms is still a hot option for growing your money. A good investment can take you out of that office gig and into a lavish lifestyle, help you escape the 9 to 5 or just give you that extra cash you need.
Here’s how to get started in investing:
Decide the amount and the level of risk
This is paramount and you should go no further than an internet search if you don’t have this clear. Invest with foresight, never more than you can allow yourself to lose, and if you hate losing, never more than you’re willing to part with. Clear limits will keep you safe even if the result is not what you expected, the same goes for risk levels. While an edgy tech coin may be calling your name, it can also cause your investment to disappear in minutes. Keep an eye on the less exciting ones, they are expected to be stable and are more likely to succeed.
Figure out if you want to buy coins or tokens
Coins are a currency, and tokens are more like stocks. They reside on their own blockchains and represent an asset or utility that usually rely on projects. An example of a token is XRP. We’re not going to go too much into tokens here, this is just so you know that to invest in them, you have to be familiar with them and really into the people behind the projects you are backing. Trading them isn’t as straightforward as coins.
Do your research
Now, this is business 101 but when it comes to the crypto world, you must be very thorough to avoid getting into the wrong kind of deal and losing your hard-earned coins. Investigating the right fit for you will be the legs on which the whole investment starts standing on so be precise and take your time. It can also be helpful to build (or join) a community of other investors that trade information and tips.
Diversify your gains
You can invest any kind of sum into many different coins, according to your interest or what you find most steady, or you can branch out and have fun with it. For example, you can play bitcoin gambling games or give advice to others once you’ve made a few successful investments.
What to watch out for
Rash decisions. As with any market, cryptos can, and will, fluctuate depending on the situation, unless you go with the slow burners like Bitcoin. Whenever you are deciding to buy or sell, take a deep breath and consider all of the factors before doing anything.
Current events. Keeping up to date with the latest news can save you investment heartache, so pick your sources wisely and stay tuned to the information flowing in.
Market specifics. There’s a lot to learn but it’s not as complicated as it seems, you can catch a few more stand out tips from other experts here.
Now that you’ve got a headstart on your 2020 crypto dreams, keep your eyes open and this next decade could be the turning point for you too!