You’ve probably had your eye on crypto for a while now. You’ve probably wanted to take the plunge and play with the risk for a while too. And you can imagine yourself on the other side of your investment, looking at your crypto value climbing up and your chances of securing that early retirement coming closer and closer.
It’s the kind of dream every newbie crypto investor sees themself in. The reality, on the other hand, is a lot more complex. But you know that, and that’s why you haven’t taken the plunge quite yet.
But you also want to know when and where it could be a good time for you to finally get some crypto under your belt, and that’s what this post is here to help with. Is now a good time for you to invest in crypto? Let’s take a look.
What Crypto are You Thinking About?
There’s quite a few currencies out there, and even more landing on the market even as you
read this sentence. And that’s the whole problem really. Cryptocurrencies are decentralized.
Anyone can make one, anyone can try to trade them, and anyone can sell them on whenever they like and run away with the profits. It’s another reason why ‘pump and dumps’ are such a common scam for crypto investors to fall for.
But there are some coins out there that have stood the test of time. Bitcoin, for one, and Ether (Ethereum) for another. So it’s clear that cryptocurrencies can make it past their first 6 to 12 months on the blockchain.
But how do you act carefully here?
Unless you’re only willing to put your money into coins like those above, you’re going to want to ‘verify’ the valuations of any currencies that look good to you.
You need to know what they really stand at, and who’s guaranteeing these prices are actually going to come in. The use of an otc crypto desk is smart here, as you’re essentially getting a middleman to buy the coins and then sell them to you at a price that’s fair.
What Other Investments Do You Have?
Crypto isn’t usually the best type of investment to go into with everything you’ve got. You’re going to want to set up some more traditional investments elsewhere first, so you can have a bigger and better portfolio to rely on.
That’s why we highly recommend making sure you’ve sunk some money into assets like stocks and shares, high interest savings accounts, funds, etc., before you turn to a crypto exchange.
Of course, we’re not financial advisors – and there’s a chance you could lose all your money no matter where you invest it. But crypto is a high risk area, and moving into lower risk, longer yield investment types first typically brings in a better ROI.
So, is right now a good time for you to start investing in crypto? It depends on what crypto, as well as your overall portfolio.