5 Things to Consider When Building Your Crypto Portfolio
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Loading... - Elinah Kawira
- 27 Apr 2023
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What type of investor are you?
If you’ve decided that now is the time to invest in crypto, you may still be a little unsure of how to go about it. The good news is the fundamentals of investing apply in the world of digital currency, just as they would if you were building a traditional investment portfolio.
If you were making your first foray into traditional investment, you’d take care to research all the assets that took your interest; you’d think carefully about how much risk you are prepared to carry, and you’d probably ask an expert for guidance.
“Today, the traditional financial system remains a key gateway for participation in the crypto ecosystem through fiat on and off-ramps. It allows users to participate in the crypto economy and transfer their funds safely to their bank accounts and currency of choice when needed. In other words, the two financial systems are not mutually exclusive but operate in synergy to serve users’ various needs,” notes Hannes Wessels, the Country Head for South Africa at Binance.
- What type of investor are you?
It’s important to ask yourself this question, because it’s going to determine the amount you are prepared to invest as well as your strategy. For example, if you’re simply curious about crypto and how the world of cybercurrency works, you’ll be far more cautious in your investments than if you have already done plenty of research, maybe purchased some altcoins and already seen a few market dips.
- Which crypto currency is for you?
Did you know that Binance has 350+ cryptocurrencies? Obviously, that’s a lot to research individually – which means that most people may opt for the better known currencies, like Bitcoin or Ethereum. There’s nothing wrong with that – but remember that there are other alt coins that offer interesting returns if you are prepared to give them time. As a general rule, any social media hype should be disregarded in favour of solid research – and you may also want to hang onto some healthy skepticism when it comes to cryptos that seem to have a high novelty value. Read More…
