With all the excitement and buzz in the cryptocurrency space, I am sure that many investors that have not invested in the cryptocurrencies are either curious or want skin in the game.
Many people are curious and want to invest in these currencies, but are scared of investing due to the volatility and lack of security on certain exchanges.
For those brave enough to enter the Crypto Space here are some tips I have that I have used myself to dabble in this revolutionary area.
Remember that these are speculative investments
When investing in cryptocurrencies I would recommend that you treat them like any other speculative investment. This is a relatively new technology and form of exchange so there is a lot of volatility and speculation in this market.
I encourage you to have the mindset of being okay with losing whatever money you are willing got put into the cryptocurrency market (almost as if you are gambling.
As a rule of thumb, I would suggest that you invest no more than 10% of your capital in these cryptocurrencies, preferably 5% in my opinion. For additional risk management, I would suggest that you not only invest in Bitcoin but other popular currencies such as Etherum, Litecoin, and Ripple. However, be wary that these currencies tend to move with each other at the time.
Use a Reputable and Secure Exchange
In the news, you may have seen certain exchanges being hacked or fraudulent. Please do your due diligence and select a proper exchange, your security and data are very important. The safest bet would be to use Coinbase, it is easily the most reputable exchange for cryptocurrencies and is fairly easy to use. However, at Coinbase you can only hold Bitcoin, Etherum, and Litecoin, so if you want to be exposed to other coins you may have to find another exchange.