Over the past 5 years, the first cryptocurrency has risen in price by more than 1620%, becoming one of the most profitable assets. It is easy to invest in cryptocurrency, for this you do not need to have a lot of capital, as in the case of mining, or special knowledge, as in trading.
The undisputed leader in digital money is Bitcoin. This is the first cryptocurrency to occupy more than half of the market, at the moment its share is 58.6%. However, there are tons of other decent blockchain projects that deserve attention.
Buying only bitcoin is a mistake, you need to remember the diversification rule. It states that one asset should occupy no more than 10% of the portfolio, explained Andrey Berezin, Managing Partner of Raison Asset Management. According to him, it is risky to make a portfolio only of cryptocurrencies, even if they are different.
“All cryptocurrencies should fit within 10% of the investment amount, the rest – stocks, bonds, gold, etc. In absolute numbers, the minimum threshold for investing in a crypt can be at least $ 10, but the purchase method is important. If an investor buys not a real cryptocurrency, but a derivative instrument from a broker, there is no minimum. If we are talking about buying ETH and BTC, I would recommend counting on at least $ 200 so that commission costs do not cut profitability. In some cases, the minimum wallet commission is $ 10, plus the Ethereum network commission is another $ 15. This already determines the amount of entry, "the analyst advised.
Michael Ross-Johnson, CEO of cryptocurrency neobank Chatex, called $ 1000 the best option to start investing in cryptocurrency. He also advised using no more than 10% of the available income for investing in digital assets. This approach will help to feel all the risks, but at the same time the investor cannot lose too much. However, this amount (or percentage of income) will allow you to feel the opportunities for making a profit.
“When you start investing on the crypto market, it is worth considering the following: a strategy when funds are invested in assets with record growth and the promise of quick profits (the DeFi market, for example) carries no less high risks. Conversely, investments in cryptocurrencies with an average percentage of growth (Bitcoin or Ethereum) are less risky, but can bring good returns in the long run. The principle always works: "high percentage of profit – high risk", "low percentage of profit – moderate risk". The question is in choosing a strategy for each investor, ”the expert explained.
The founder of the stable cryptocurrency platform Stasis, Grigory Klumov, added that it is worth investing 2% of the value of all your assets, including real estate, cars, deposits, stocks and cash. Klumov advised to do this once a year.
In September, the bitcoin rate decreases, but since the beginning of the year, the cryptocurrency has shown an increase of 42%, and since March – more than 200%. At the moment, the main digital coin is trading at $ 10,332. According to experts, next year the rate may grow several times and even exceed the historical maximum of $ 20,000.
However, in the short term, there is still a risk of a decline in the cryptocurrency rate by almost 50%, to the level of $ 5,000. The asset is following the US stock market, which looks overbought at the moment.