Venture capital firms invested $14.2 billion in cryptocurrencies in the first half of 2022, according to a recently published report by KPMG. The number points to a increasingly strong trend: the arrival of new investors seeking to diversify their portfolios not only with Bitcoin and Ethereum.
But after all, before the arrival of new investors, what are the first steps to follow?
For financial educator and digital influencer Daniel Carraretto, “cryptocurrencies have a place in any diversified portfolio of moderate or bold investors, as long as they are limited to a smaller percentage of their portfolio, reserved for risky assets, a maximum of 10% of the total invested assets. Thus, it is possible to have interesting returns in the longer term, without being excessively exposed to the volatility and risk of failure of any crypto asset.”, he evaluates.
Next, the expert listed to Cointelegraph en Español 4 important tips for those who want to start investing in cryptocurrencies:
from the first step
According to Carraretto: “If you are determined to invest in cryptocurrencies, it is important to start well, that is, to open an account with a cryptocurrency trading platform, also known as exchange. In this way, after transferring the money for the purchase, simply place the order in the chosen app or website“.
Choose safer cryptocurrencies
“As a novice investor, the ideal is to opt for reliable and safe cryptocurrencies such as Bitcoin and Ethereum. Bitcoin for being a pioneering and disruptive cryptocurrency, with an emission limit, and that has a great possibility of being accepted as a means of payment at some point. Ethereum, as one of the most widely used blockchain network cryptocurrencies in the world, has great potential for expansion“, continues the educator.
Protect yourself from potential asset losses
“It is of fundamental importance to understand what you are investing in and what is the purpose of cryptocurrencies. in the wallet. Therefore, carry out good risk management, avoiding acquiring more than 5% of the portfolio. Another way is to avoid smaller cap cryptocurrencies that do not have a strong design“, he adds.
He then indicates that, “Also, avoid so called shitcoins, as meme or non-objective cryptocurrencies are called, which will inevitably bring losses to investors at some point. And finally, if you pay attention to the higher risk, investor greedwho, hoping to get rich from one moment to the next, can lose everything“.
Looking to the future, not just the present
“Some cryptocurrencies have positioned themselves as more stable than others, so coins like Bitcoin and Ethereum tend to consolidate more and more and therefore the demand for them should gradually increase year after year. That said, with the increased demand, they should appreciate and bring profits to investors who are now arriving.Carraretto concluded.
Disclaimer: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
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