Before getting to know the right amount to invest in crypto currencies we should first understand what it is and how one invests in it.
》WHAT IS CRYPTO CURRENCY?
To describe in the simplest of words, crypto currency is digital money.
The thing that makes it unique is that the currencies are protected using cryptograms, making it impossible to copy.
Since crypto currencies are spread over computers based on network, it is usually not generated by the Central authority.
An important characteristic of crypto currencies is that it uses blockchain to maintain the quality of transaction.
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Blockchain are nothing but methods to organize the transaction quality.
Crypto currencies have both positive and negative image in the market. They are looked down upon because of their activities that are not legalised by the the central authority , evaporation of exchange rate, and they are looked up to because of their versatility, transparency, etc.
There are various types of crypto currencies in the digital market today, but the one that came and never went in BITCOIN. It was the first crypto currency to have a stable release. After that several currencies were discovered but all them came to be known as as altcoin ( alternative for Bitcoin).
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》HOW TO INVEST IN CRYPTO CURRENCY?
Investments have always a confusing and risky thing to do. But investment in crypto currencies is one of the toughest amongst all.
The number of exchanges taking place is almost uncountable and there are several regulations that one needs to understand to understand before getting into investing in the business. It demands a detailed research of every detail it holds.
Enough about the risks and precautions, let’s look into the actual process.
The first thing that is needed for investing in crypto currency is a account that handles the trade.
Then we need to fund that trading account using some exchange system. There are innumerable exchange system available in the market and we could easily choose from them depending on the pros and cons.
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Ones we are done buying the currency, we store it in a secured digital wallet of our choice and we are all set.
However there are some minute points that we need to keep in mind while investing in the crypto market.
1. We should never take a debt to begin our investment.
2. If we are ready to invest we have to be ready to lose.
3. As already mentioned, do your research right.
4. Greed never does good to anyone, be practical and keep aside the greed.
Now that we have got a brief idea of crypto currencies and how to invest in it, let’s focus on today’s topic, which is-
》EXACTLY HOW MUCH SHOULD WE INVEST IN CRYPTO CURRENCY?
After people get the brief idea about cryptos and understand how to invest in it, the very next thing that they are always eager to know is how much should they invest?
And it’s very natural to do so because cryptos are nothing short of a maze.
First thing that we need to remember always while beginning our investment in crypto currency is that we need to start small. And this can be done easily because we can always buy a part of a single currency, it is not necessary that we need to buy a whole coin also.
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Crypto currencies are quite risky, in the sense that we can easily lose our earning over a mechanical error or just by forgetting our password. This is the reason why experts suggest to never invest more than u can lose.
There are groups of people who have earned a good amount from investing in crypto currencies and most of them suggest to invest in Bitcoin because they consider it to be the safest among all. But if your investment capital is small, then , XRP Ripple would be the best choice.
Some reports suggest that one should invest only about 10% of their income in cryptos and that if the currencies rank among the best ones and some other reports suggest that you should invest what you are saving from your income.
So we can go by the reports and do what popular opinion suggest or we can trust our own judgement and do what our gut feeling tells us to do. But no matter whichever option we choose we should always do our research right.