Should you invest in crypto when you know nothing about it?

Crypto is a word that has become popular. The movements are spectacular and the long-term rises of the big cryptocurrencies can make you want to invest.

By opening a trading account, you will be able to buy cryptos. The specialized cryptocurrency trading platforms offer between 30 and 300 of the most famous cryptocurrencies with the largest market capital.

If you really want to own it, you will need to open a crypto wallet. The wallet allows you to buy any crypto with the purpose of own self Really.

Why buy it?

You can buy cryptos to trade, but in this document it is more of a question. long-term investment.

So you’ll have to do belief purchases, you have to learn about the crypto project and be seduced by it. When you buy long term, it is to keep your cryptos hot for months or even years to make a profit. of a large long-term uptrend.

What are the risks?

How you are beginner in the financial markets you may not be aware of all the risks that exist when investing.

You must already think that your crypto broker may have financial or other concerns at some point. you will have less legal protection in case of financial problem of your crypto broker in relation to a French bank or broker acting on regulated assets.

So, like any stock asset, the price of a cryptocurrency can fall in the short, medium and long term.

To diversify

To limit investment risks, you can to diversify your crypto wallet. Choose coins with different profiles. Avoid taking only cryptos low cap market and very little known by investors. Avoid Carrying Too Much Crypto With similar projects.

Do DCA

the DCA (average cost in dollars) consists of distribute your purchases in the time. For example, you will put 200 euros per month in your cryptocurrency account. This cash will be used to invest in new lines, but also to strengthen existing lines (not mandatory).

The fact of distributing the purchases makes it possible to limit the risks by smoothing cost price.

Capital (commitment)

Their capital in crypto it should be weak in relation to your income, your personal savings, etc. Should not not be too committed. Too strong a commitment can make you feel uncomfortable in the face of latent capital losses. It will pressure you. When you invest you should not stress.

the long-term

You must invest for long term see in the very long term. Playing for very long periods (several years) will limit the risk of losses.

position size

Each crypto line should only represent only a small percentage of your capital.

I suggest you read our file on the top 5 crypto stocks to invest in. It will give you ideas. Of course, it has to adapt to the way you invest.

warnings

As usual, I send you a message of warning because for me the secret of success is to pay attention to your capital and limit the risks in the financial markets 😉.

A big loss in the cryptocurrency market can put you at additional financial risk (in the stock market or elsewhere).

Therefore, you must ensure that you limit the risks and, above all, do not invest in excess.

In this document there is no no purchase adviceYou have to form your own opinion. The information provided may help you with this.

Good investment to all and eye 😉

Leave a Comment

Your email address will not be published. Required fields are marked *