The cryptocurrencies market is growing day by day. When Bitcoin first came into existence in 2008, it was very cheap to buy. People didn’t think of investing in Cryptocurrency back then. They didn’t have a clear idea about how it works and how much return it will get. When the end of 2009 was near, the price of Bitcoin was less than 1 USD. You could buy 1,309.03 BTC in just 1 USD. Today the bitcoin is worth 3864.29.
So, the question is the same. How much to invest in Cryptocurrency. You can take into consideration the below points.
Advice from a Billionaire
Erik Finman is a 19 years old Millionaire who brought his first Bitcoin at the age of 12 years. He brought it when her grandmother gave him, $1000 Gift. He has currently 401 Bitcoins; the value of which is more than $3 Million.
He cleared the people’s views on how much they should invest in Crypto. He suggested following the 50-30-20 rule. The rule says 50% of the total income goes into needs of human, 30% if the income will go in the discretionary spending while the rest 20% goes to savings.
However, you should not invest all of this money into Cryptocurrency. The reason you should not invest all of the money is that you might lose your savings. Although the price of Cryptocurrencies has been tremendously increasing still, it is a better option to invest 10% of your income and around 50% of your savings in Crypto. Make sure you make a diverse portfolio and do not invest all of them in a single place.
Instead of investing all of the money at once, you can alternatively choose to invest a small amount of your money but on a regular basis. The price of all the Cryptocurrencies is going up and down. It surely will not necessarily go up. In such cases, having regular investments will help you to get the most returns through Cryptocurrency. Make sure you choose the right coin to invest.