- It is important to acknowledge the fact that there is almost no protection for crypto investors.
- It could be simpler to use the more popular exchanges.
- There are ways to learn about crypto without investing in a currency.
The crypto market saw a huge crash in May and, even now, remains in a bear market. This could be very intimidating for new and aspiring crypto investors, but there is a “crypto blueprint” investors can follow to make things a bit easier.
Even before investing one’s money, it is important to acknowledge the fact that there is almost no protection for crypto investors. One thing to watch out for is what’s called a pump and dump, where scammers encourage people to buy a token, causing its value to rise, and then the scammers sell out, causing the price to plummet.
If an investor then decides to invest in crypto, it could be simpler to use the more popular exchanges like CoinBase, Binance, or FTX. Once the account is ready to go, it is easy to transfer money into it from the user’s bank.
When it comes to what percentage of the portfolio should consist of crypto, it is very difficult to tell as there is not enough data to determine this yet. The best thing to do is to keep the user’s exposure low.
Another important factor to take into consideration is that the user has to pay taxes on their crypto. However, they do not have to report crypto on their tax returns if they did not sell or exchange it for another type of crypto.
If an investor is still hesitant about fully investing in cryptocurrencies, there are ways to learn about crypto without investing in a currency. Some options include buying shares in crypto companies, getting a job in crypto, or just simply buying tokens to experiment with.
Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.