Courtney Myers Blog | Investing in Cryptocurrency? Here are Five Steps to Take | Talkmarkets

Investing in Cryptocurrency? Here are Five Steps to Take

Date: Saturday, September 8, 2018 1:36 PM EDT

Savvy investors are those who watch the market closely for movements and patterns trending upward. They’re also on the lookout for new stocks that could change the market significantly. To this end, many are curious about cryptocurrency, the digital exchange medium that has taken the world by storm since Bitcoin was announced in late 2008.

Hailed by many experts as the way of the future, cryptocurrency is both intriguing and innovative and as such, it stands to reason that investing in it can yield a significant reward if the predictions prove true. Still, as with any new technology investment, it’s important to understand as much about this medium before putting money toward it. This is especially the case with cryptocurrency, which looks and operates vastly differently from traditional fiat money. Before you invest, here are five steps to take.

1. Research, Research, Research

It seems that almost every day, a new form of cryptocurrency hits the market. As such, you may be inundated with the possibilities and unsure which ones to follow. The most solid way to move forward with a confident decision is to do your due diligence research on every asset. At the very least, there should be a solid, reputable team behind the currency. It also helps if the asset has a unique angle, or offers a proposition that sets it apart from the myriad types of competition.

Even after you’ve made your decision, your studying should continue. Stay abreast on the market by reading online news updates, subscribing to applicable newsletters and more. Learn as much as possible about this sphere, as it is always changing and growing.

2. Remember to Diversify

Have you ever partnered with a financial advisor to create an IRA or retirement portfolio account? If so, chances are he or she advised you to diversify the assets in your account among stocks, bonds and mutual funds. The theory behind this practice is sound: Putting all of your eggs in one basket (say, stocks) could mean a dramatic dip if the market turns downward. On the other hand, if you have it balanced across different types, you’ll be more resistant to negative reverb felt by its inevitable ebbs and flows.

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