The cryptocurrency market has turned heads in recent years, to the point where everybody and their grandmother has at least heard of BitCoin. They promise a way to be a reliable store of value and more and more cryptocurrencies are coming out every day.
Many of these new currencies are being adopted across the world, with Ripple and a few others gaining mainstream appeal. As cryptocurrency is beginning to be pegged as the currency of the future, it makes sense for a lot of people to consider investing heavily in cryptocurrency. For instance, those who have just received a large sum of money through inheritance are considering re-investing the money into cryptocurrencies. The question is how much and whether or not it is a good idea in the first place.
First: Make Sure You Have Access To The Money
Cryptocurrencies are highly volatile and are subject to radical change on a weekly or occasionally even hourly basis, meaning that whatever you’re assuming about the market right now might not be true in a year or two. This means you should make sure that your inheritance is accessible when drawing up your investment plan. Often times, inheritance, money gets caught up in probate, this is where a service like ProbateAdvance.com can come in handy. Once you’ve secured your money and can invest it, you can now decide whether or not cryptocurrency is in your future.
Don’t Invest More Than You’re Willing To Lose
Many people have put their life savings on the line with crypto not understanding the highly volatile nature of the market. If you’re expecting to get rich quick, that era of crypto has passed for the time being. The overall net worth of crypto is still recovering from the boom-bust cycle that culminated in 2017, where BitCoin saw prices of nearly $20,000 USD to 1 BTC. Now BitCoin stands somewhere at around $5,000 to 1 BTC, so those who bought while it was at its height are still waiting to recoup their losses two years later.
This is why you should never invest so much money into cryptocurrencies that you would have a difficult time financially should the market experience a downturn. Crypto changes very quickly and fortunes can be made or lost over a span of six months without anyone batting an eye. If you only invest what you’re willing to lose, all you have to do is wait for the market to go back to where it was before.
Invest In More Than One Coin
While BTC remained something of the gold standard for cryptocurrency for some time now, some analysts predict this won’t always be the case. New coins are coming out at a rapid pace and some of them deal with many of the major issues holding BitCoin back. Now many of these coins won’t have nearly the staying power of BTC, but if you look carefully and check on other coins that have performed well or are poised to become big players in the coming years, it would be wise to invest some money in these coins. This way, if one coin falls drastically, but others continue to rise, your investment portfolio will still be in the black.
Investing in crypto can be scary at first, but so long as you do your due diligence and invest wisely, there’s no reason why it can’t be a gainful experience. Inheritance money is money passed from one life on to the next, and crypto might just be this generation’s way of securing a financial future. Best of luck in your investing endeavors!