Investment in crypto currencies has really blown up in the last six months, all thanks to the rapid rise in value of Bitcoin. Although a mini-crash on 16th January scared away a lot of new investors, the crypto currency market is really booming in 2018. Crypto assets such as Ethereum, Ripple, IOTA and Neo have caught the eye of first time investors and even though the market is volatile to say the least, there has been a massive interest in such assets with some pioneers equating the tech behind these companies to early stage internet bigwigs like Google and Facebook.
If you are one of those people looking to invest in crypto assets, here are some basic investment rules that you should always take care of while investing in crypto currencies.
1. Invest Only What You Can Afford To Lose
Do not invest all of your life savings into crypto currencies. These assets are volatile and you should learn to hedge your investment against the massive risks you take while investing in crypto currencies. As a rule, only invest the money that you can afford to lose i.e. that bonus you don’t intent to utilize in the short-term or a small percentage of your earnings every month. Start slowly and build up your portfolio depending on the amount of returns you get from investing in crypto.