Financial security. We all want it, and one of the best ways to obtain it is through strategic investments. But what’s the best approach? Should you invest your money in the stock market, build a crypto portfolio, or a little bit of both?
To answer that question, you first need to identify your financial goals. Do you want to grow your wealth over a period of time, or do you want to make quick money on changes in the market?
If you want to make money in a shorter timeframe, cryptocurrency is probably your best bet. The crypto market is incredibly volatile. Changes happen at the drop of a hat, making it possible to grow double your money in a couple of months, a few weeks, or even in the same day. Of course, this isn’t really investing—it’s trading.
But what about long-term investments?
At face value, stocks are certainly the safer choice. There are regulations in place to protect the investor and ensure transparency across all levels. While that doesn’t mean that “conventional” investors can’t or won’t be conned out of money—it happens all the time—it creates an extra layer of protection for investors.
Plus, there are index funds. If you’ve never invested in them before, you can read all about them here. Basically, index funds are portfolios you invest in. Instead of hedging your money on the success of one company, you invest in a few of them. As such, they’ve become an essential part of the retirement portfolio due to their stability and low turnover.
Then there’s crypto. You can make a lot of money in crypto, and you can lose a lot as well. But market volatility isn’t the biggest challenge that the industry faces, it’s transparency. Due to the fact that crypto markets are largely unregulated, the industry has garnered a Wild West image where anything goes. It’s not unheard of for a startup to appear out of nowhere with a well-written whitepaper and a great marketing team that generates a lot of buzz. Only for that company to completely disappear after they’ve raised funds from investors. For this reason, cryptocurrency has scared off a lot of traditional investors. But that’s changing.
In January, the Nasdaq-backed cryptocurrency exchange, DX Exchange went live. That’s a huge step in adding legitimacy to the industry.
But let’s talk results and financial stability.
Should I invest in crypto?
Absolutely. There’s a lot of untapped earning potential in the cryptocurrency markets. Plus, it’s always a great idea to diversify your investment portfolio.
What you should not do is put all your eggs in one basket. Part of the reason crypto investing got a bad reputation was because of greedy and careless investors who took their entire retirement savings and invested it in Bitcoin or Ethereum. Or even worse, Bitconnect.
With that said, you can build wealth over the years by investing in cryptocurrency. You just need to follow a few simple steps:
- Build a cryptocurrency portfolio alongside your stocks. You don’t have to choose one or the other.
- Diversify your crypto investments. Choose some of the heavy hitters like Bitcoin, Litecoin, and Ethereum to add to your portfolio.
- Also invest in some up-and-coming projects like Stellar or BlocPal, as well as established projects with low-cost tokens like Ripple and VeChain.
But most importantly, do your own research. The easiest way to lose it all in cryptocurrency is to buy the hype people sell and dump thousands of dollars into a token that’s just come off a bull run. A lot of people learned this the hard way at the beginning of 2018 when they were shoveling cash into Ripple and Litecoin after their big breakouts, which were followed by massive, long-term corrections.
To summarize: Do your own research. Be smart and diversify your investments. Spread your money between stocks and cryptocurrency. Also, bookmark CryptoTraderNews to stay on top of all market-related news, so you can make informed decisions about your financial future.
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