Crypto Investment: Where to Invest for Maximum Profits

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Investing in Cryptocurrencies for the first time, you are overwhelmed with questions:

  • Is Crypto a good Investment?
  • What is the best way to buy crypto?
  • What’s a solid crypto investment strategy?
  • How much to invest in crypto?

These questions can get you so confused that they prevent you from getting started.

This is why I’ll share my experience and give advice on how much you should invest in crypto as well as guide you on how to ease the process of getting started.

First off, I’ll suggest investing in Bitcoin as beginner. Bitcoin is the most widely known and accepted Cryptocurrency, making it a great starting point for beginners. It is liquid, secure, and reliable, and has seen tremendous growth in recent years, making it a great option for potential high returns.

Now that we have that in mind, let’s move on to the main part of this article

How Much Should You Invest in Bitcoin?

You should invest in Bitcoin somewhere around 5% to 30% of Your Investment Capital. I consider 5% to be very safe and 30% to be pretty risky. Personally, I sit most of the time between 15% and 50%.

This is because I am a Crypto Trader. I have the experience and knowledge to take advantage of the volatility of the market and maximize my returns. I use high capital to day Trade, taking advantage of short-term price movements to generate high profits. I understand the Market and the risks associated with it. I have a good understanding of the technical analysis and fundamentals of the Cryptocurrency Market, which allows me to make informed decisions when Investing.

Ultimately, the decision is yours. And although it depends on market factors, it also depends on personal factors such as your risk tolerance and the amount of money you can afford to lose.

Still Worrying About Making The Wrong Decision?

If you’re still afraid of investing in your first pieces of Bitcoin, follow these advice that will help you get started smoothly:

  1. Invest even $20-$200 on any recommended Cryptocurrency Exchange or Broker. This way you’ll get started and you’ll have a much better understanding of what it is to be a Cryptocurrency Investor.
  2. Divide the budget you had in mind and invest it over some time -. One week, 2 weeks, 1 month, 3 months, 12 months – it’s your call. But doing so will prevent you from making costly mistakes and save you money.
  3. Remember that you can still reevaluate your decision in the future.
  4. Choose the best platforms to buy Bitcoin. There are many Crypto platforms but to make it simple for you, I recommend Binance, Coinbase, and Kraken.

Now, let’s dive into 4 factors you should consider when deciding how much to invest in Bitcoin and the best way to invest in Bitcoin.

Factor #1: Risk tolerance

When considering how much to invest in Bitcoin, it is important to consider your risk tolerance. Crucially, investors should consider how much they can realistically afford to lose when assessing how much to invest in cryptocurrency. If you feel that you would be overly distressed or regretful or even suicidal, it is best to lower the amount you had in mind and reassess. Additionally, it is important to ensure that the amount you invest does not affect your judgment.

Factor #2: Profit tolerance

Although it can seem like stupid advice at first, think about it: if you invest an amount that can get you highly emotional when you lose it, what will happen if you x20 your money?

This happened to a lot of investors back in late 2017 when cryptocurrency was booming. They became millionaires because they made the (poor) decision to invest their life savings.

So once again, think about the amount you plan on investing. How will you behave if it’s worth 20x its initial value in one year?

  • Will you rent a bigger apartment? Buy a fancy car?
  • Will you fall in love with your Cryptocurrencies and hold them until you die?

So how to invest in Bitcoin? Once again, Investing an amount you’ll feel emotionally detached from is essential, whether your assets go up or down. It will make you a solid investor that will lose less Money when the Market goes down, and profit more when it goes up.

Factor #3: Timing

I bet you’ve heard much more about Cryptocurrencies when Bitcoin’s price was booming, as opposed as to when it’s declined or stabilized. This is because of people and media alike have a natural tendency to follow existing trends.

But do you know that the Cryptocurrency Market is made of repeated market cycles?

Just like the Stock Market, these Market cycles often last for 1 to 2 Years. Prices surge fast, creating bubbles. BIG bubbles. And then, these bubbles burst badly.

Timing is crucial in Cryptocurrencies. It can completely change your journey and the way you’ll look at it.

As a result, when deciding how much you should Invest in Bitcoin, look at where we’re at now in these Market cycles, and you are going to find the best way to Invest in Bitcoin.

To find out this Information, open the Global Market chart of CoinMarketCap. Look at it closely, and answer the following questions:

  • Are we close to the Market all-time high?
  • How long since we experienced a Market bull run?

The closer we are from the market’s all-time high both in terms of price and time, the least you want to invest. On the other hand, if the current price is the current price is much lower than it was two years ago, then it should be a better time to invest in Bitcoin right now. The current price of Bitcoin is around $26,000 and it’s highest price was $68,789 two years ago, therefore now is the perfect time to get in on the action.

Don’t get me wrong: even though we’re in the middle of price surges, it’s not a bad idea to invest money in Cryptocurrency right now, because it gets you started. The timing should only change your entry approach and lower/increase the amount you had in mind initially.

Factor #4: Diversification

Diversification is a technique any mature Investor uses to reduce the importance of luck. It means you will not only invest in cryptocurrencies but also allocate your capital to different Investment vehicles, such as Real Estate, Stocks, Gold.

You can also leave some of Your Money at your Bank to Earn a Small Interest Rate.

All in all, don’t put all your Eggs in your Cryptocurrency basket.

Another Metric to Consider when evaluating an Investment Strategy is the risk-return ratio of the Cryptocurrency. Cryptocurrencies with strong fundamentals such as Bitcoin, Ethereum and Cardano are potentially attractive in this regard.

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