Investing in cryptocurrencies is perhaps the most popular way to passively earn on cryptocurrencies. Interest in it has not faded for several years, especially since every year there are more and more arguments that the crypt has economic potential.
Check out a few tips before turning to cryptocurrencies as an investment vehicle:
Invest only that money, the loss of which will not be critical for you and will not violate financial stability. Do not take out a loan to invest, do not take out the last stash.
Be mentally prepared to lose up to 60% of your investment at first and don’t panic if this happens. The crypto market can rise as quickly as it can fall. If you aim strictly for 50%, 100% or 1000% income, then it is more like gambling.
Carefully examine a coin before investing in it. This is especially true for newly emerging assets.
Diversify your investments. The standard scheme is to invest 50% of the funds in Bitcoin, and distribute another 50% between promising altcoins, as well as third-party assets such as stocks.
It is believed that investing should be based on faith in technology, and not on the desire for a quick profit. If approached from this point of view, it will not be difficult to survive the volatility of the market and wait for a really profitable moment to sell.