Before rushing to make any decision, you should always try to think things through as much as you can. The same is the case with cryptocurrency. It has taken the financial world by storm, and it seems to be the new hot thing people have been raving about. Before you hop on the bandwagon and begin investing in digital currencies for your portfolio, it’s important to look for signs to see if this is the best choice for you.
We have compiled a list of signs to be cautious about as they might change your mind regarding investing in crypto.
You’re not a Tech Geek
Not everyone is and needs to be a tech guru if they are thinking about investing in cryptocurrency. However, digital currency and its trading platforms are technologically advance and a bit complex. Therefore, you must have some technical knowledge before you start investing. One of the key things to do is hack-proofing your wallet and knowing how the crypto market works. If you’re not tech-savvy, we suggest you stick to more traditional forms of investment.
You’re Not Too Keen About the Crypto World
This one is pretty simple. If you’re not interested in crypto as much as you are in making money, then maybe investing in cryptocurrency may not be the best choice for you. If money is your only motivating factor and not the technology itself, you’ll be better off investing your money elsewhere.
This type of investment isn’t targeted at just making money and the crypto user rich – it has more to do with supporting this form of technology, unpacking its true potential, and determining the impact it has on society.
You Tend to Panic Sell
Zero Time and Effort for Due Diligence
When dealing with high-risk stocks or items like crypto, you can’t and should not neglect the importance of due diligence. Cryptocurrencies are arguably the most dangerous forms of investment, and this includes Initial Coin Offering (ICO) scales. It is said that around 80% of ICOs are a scam and will result in you losing a lot of money. If you don’t want to make a bad investment choice, it is important to do your background research and know where you’re investing your money. If you feel like you don’t have the time or patience to do your due diligence, maybe sticking to S&P 500 funds will be the better option for you.
A High-Risk Investment Portfolio
We have all heard the saying – the greater the risk you take, the more rewards you get. Although this might be true in some contexts, if your entire investment portfolio consists of high-risk assets, you may want to hold yourself back from investing in cryptocurrency. There are many people out there who have lost their entire life savings to crypto, and you shouldn’t push yourself over the edge either.
You’re Not Sure What’s Happening
Investing in cryptocurrency means having a good command of the terms and mechanisms. If you don’t know what an ICO is, or what a DAICO is, or you’re unsure of what tokens do – then you shouldn’t invest in crypto anytime soon. First, you must educate yourself about the world of crypto and how this type of investment works. If you don’t know the basics and aren’t educated on the matter, then it’s probably for the best that you don’t spend money on it. However, if you’re keen to know as much as you can about cryptocurrencies, then the bitcoin system app is what you need.