Cryptocurrency has reached record highs over the years. However, it is quite a divisive topic, as some investors are for it, while others are strongly against it. In case you have been considering investing in crypto, here are the top signs that you are ready to start investing in it and trading on Immediate Edge.
You’re ready to take on risk
What is your risk tolerance? How would you feel if you were to lose all your investment overnight? The price of crypto is quite volatile. Not everyone can withstand such a risk. One day the price is up, the next day it has dipped. If you have the stomach for such kinds of fluctuations, then you are ready to start trading on Immediate Edge.
You have done your research
Carry out due diligence and find out more about cryptocurrencies. Research different coins and determine the best one for you. Read as much as you can about the various cryptos and choose one. There are many popular coins to go for.
Not all coins are the same. For example, Bitcoin has the longest track record and Dogecoin is one of the riskiest options. Some of the questions to ask yourself is whether the coin has potential for long-term growth or a competitive advantage.
You have other investments
If you have other investments, trading crypto could be one way to diversify your portfolio. This way, in case of any losses, you will have other things to fall back on. Since crypto is not a stable investment, you want to ensure that your portfolio has other stable options. Diversify in other industries, so that you can withstand the test of time. In case your crypto investment turns for the worst, you will have a fallback plan.
You are ready to invest long term
One basic way to make profits is by investing for the long term. Long-term investments that last years are likely to bring good returns. Therefore, be ready to put in money that can be invested for the next few years without being pulled out of the market.
You have an emergency fund
You should not invest money that you will need shortly. That is why you need to first set up an emergency fund, which you can use in case you run into problems. Set aside 3-6 months worth of expenses. This way, in case you lose money when trading, your life should be able to go on as usual.
Use your ‘extra’ funds to invest in crypto trading. If there is no emergency fund, then you will be forced to sell your investment, in case an unexpected expense comes up. This will disrupt your investment plan. You may suffer loss when you sell at the wrong time.
How to buy the crypto
Once you have decided to buy and sell cryptocurrency, you should have a plan of how you are going to buy and sell it. This involves finding a trading platform, like Immediate Edge. This will let you exchange different digital assets. An app that allows you to trade free is a good deal. You will not have to pay any commission every time you make a transaction.
You have a plan
Buying and selling crypto should be part of a larger plan. You should not just do it as an end in itself. Part of the plan includes the amount of money you are willing to invest, your financial goals and when to sell. With a plan, you greatly reduce your chances of losing money.
Additionally, you should not have a high-interest loan that you are currently servicing. Other fundamental areas to cover involve having a retirement plan in place. For this investment to be successful, you should have a solid fundamental financial strategy. This is due to the speculative nature of crypto.
Part of investing requires taking responsibility for your actions. Be ready to own up to how you store and secure your investment. Take the necessary precautions to avoid losing money. Since this is an unregulated market, the burden of anything that happens will be on you.
Crypto trading is not necessarily the right choice for everyone. Therefore, before you dip into this area, make sure that you are totally in. Go through the points discussed above. When you are sure that you are ready and it is time for you to start trading, create an account on Immediate Edge and get started.