NERDBOT
    Facebook Twitter Instagram YouTube
    Subscribe
    NERDBOT
    • News
      • Reviews
    • Movies & TV
    • Comics
    • Gaming
    • Collectibles
    • Science & Tech
    • Nerd Culture
    • About Us
      • Join the Team at Nerdbot
    NERDBOT
    Home»Nerd Voices»NV Finance»4 Tips For Investing In Crypto Safely & Responsibly
    Kanchanara on Unsplash
    NV Finance

    4 Tips For Investing In Crypto Safely & Responsibly

    Nerd VoicesBy Nerd VoicesJune 28, 2022Updated:June 28, 20224 Mins Read
    Share
    Facebook Twitter Pinterest Reddit WhatsApp Email

    In recent years, nothing has entranced the world to such an extent as cryptocurrencies, with mouth-watering returns from certain altcoins and SuperBowl Commercials, to endorsements from the likes of Larry David and Matt Damon, there simply seems to be no stopping this decade old concept from upending traditional markets and currencies.

    While the recent extended bear market has dented the erstwhile rosy image of cryptocurrencies, the party is far from over for the die-hard enthusiasts. 

    If anything, experts believe that the recent corrections should bolster an application based approach to crypto, fundamentally altering the nature of the market, which has thus far relied on names, spectacles, and the buzz surrounding assets to make their bets.

    If you are hellbent on dipping your toes in the crypto pool, this guide should help set the stage for a safe and responsible experience, with certain tried-and-tested best practices to familiarize yourself with before taking the plunge. 

    With no regulatory body, or ombudsman, investors are essentially dealing with the wild west equivalent of a global financial system, making it all the more perilous if things go wrong.

    1. Understand Your Risk Tolerance Level

    Responsible investing starts with an understanding of the current financial position, consisting of income, expenses, assets, and liabilities. 

    This should help ascertain the amount of money you are fine losing, without having any detrimental impact on your long term financial future, or the ability to put food on the table. A lot of investors have lost their shirts in recent years, trying to play the crypto markets.

    Ideally, you should only invest money that you are willing to lose, and have some savings, or a diversified portfolio to cushion any falls arising from your cryptocurrency endeavors. Never make the mistake of taking out long term savings and investments, in pursuit of superior returns in crypto. 

    Given the level of volatility with these assets, investors might see big swings in their valuations within just minutes. 

    2. Don’t Buy Crypto With Your Credit Card

    Most crypto wallets and exchanges don’t have any restrictions with regards to where your funds come from. While some exchanges don’t accept payments from credit cards, a vast majority of them, including the likes of Finance, do allow investors to buy cryptocurrencies by using their credit cards. In fact, there are certain cryptocurrency credit cards, issued especially for this purpose.

    However, it is highly recommended that you don’t buy crypto using your credit card, especially since most exchanges charge exorbitant fees in order to facilitate credit card transactions, often as high as 3% to 5% of the total amount. 

    Beyond this, many credit card issuers have recently started treating crypto transactions as cash advances, levying a 3% to 5% one-time fee, making the process overly expensive.

    3. Diversify Your Crypto Portfolio

    Instead of chasing the ‘next big coin’, and putting all your investments in one basket, it is highly recommended to diversify your crypto portfolio across a wide range of different assets. Given the large number of scams, and unscrupulous players that dominate this ecosystem, you are better off with your wealth spread over a wide range of assets, to cushion the losses arising from such scams.

    With tens of thousands of coins available, each with different features, characteristics, and applications, an ideal portfolio can ensure the perfect balance, ensuring support in all types of market conditions. 

    There are a few assets that don’t follow broad-based market trends, and tend to perform inverse against big hitters such as Bitcoin, and Ethereum, making them ideal in hedging against drawdowns.

    4. Beware of Scams

    If something sounds too good to be true, it probably is, but when it comes to the crypto markets, it definitely is a scam. The ecosystem is filled with influencers, product creators, and marketers who are constantly looking for a way to make quick bucks by selling rosy tales and promises to beginners, this includes signals services, trading bots, and expensive courses by gurus.

    We cannot say that all of them are scams, but given the nature of this market, the core principle is “Buyer Beware.” 

    Scams and swindles aren’t that obvious either, leaving most consumers unsure about what hit them, and this includes pump and dump schemes, cloud multipliers, malicious wallets, and even fraudulent giveaways, all aimed at luring unsuspecting beginners, just getting started with crypto.

    Final Verdict

    These are truly exciting times in the crypto markets, and despite the massive correction in recent weeks, it is fair to assume that this segment’s best years are ahead. 

    As the ecosystem is cleaned up, and all the satire, and copycat assets are replaced with coins that have real utility, we are likely to see the mother of all bull runs in the coming years.

    Author

    Nerd Voices
    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleStephen King Reveals Only Movie He Ever Walked Out On
    Next Article First Teaser, Release Date for “Hocus Pocus 2” Released
    Nerd Voices

    Here at Nerdbot we are always looking for fresh takes on anything people love with a focus on television, comics, movies, animation, video games and more. If you feel passionate about something or love to be the person to get the word of nerd out to the public, we want to hear from you! Visit the "Write For Nerdbot" Tab Above to learn more!

    Related Posts

    Daily Cryptocurrency Trading Tips – Crypto Blogs

    March 5, 2023

    Which Is The Best Digital Marketing Agency Website

    March 5, 2023

    What Is Halal Certification?

    March 5, 2023

    Web 1.0 Vs 2.0 Vs 3.0: How Has the Internet Changed?

    March 3, 2023

    Estee Lauder Eye Cream; What Is It?

    March 3, 2023

    From Serengeti to Kilimanjaro: A Tanzania Adventure

    March 3, 2023
    • Trending
    • Latest
    • Movies
    • TV

    Christian Activist Suing The NFL For $867 Trillion Over Half-Time Show

    February 5, 2020

    Marvel Eyeing GOT Star Nathalie Emmanuel To Play The MCU’s Storm

    June 27, 2019

    Rumor: Charlie Hunnam In Talks For New Wolverine Movie

    May 20, 2019

    Scientists Are Actually Trying to Open a Portal to a Mirror Universe(Yes Really)

    December 28, 2019

    Reports of Super Nintendo World Food Poisoning Surface

    March 5, 2023

    “Creed III” Long-Running Franchise Still Packs a Punch [Review]

    March 5, 2023

    Daily Cryptocurrency Trading Tips – Crypto Blogs

    March 5, 2023

    Which Is The Best Digital Marketing Agency Website

    March 5, 2023

    “Creed III” Long-Running Franchise Still Packs a Punch [Review]

    March 5, 2023

    Jackie Chan Joins Seth Rogen’s “Teenage Mutant Ninja Turtles”

    March 4, 2023

    Fede Alvarez “Alien: Romulus” Film Announces Cast

    March 3, 2023

    “Portlandia’s” Johnathan Krisel May Direct “Detective Pikachu 2”

    March 3, 2023

    Alex Kurtzman Reveals “Star Trek: Discovery” Ending with Season 5

    March 3, 2023

    Walter White’s Signature “Breaking Bad” Undies Sell for $32K

    March 2, 2023

    Final Season of HBO’s “Succession” Gets a Fitting Final Trailer

    March 2, 2023
    Rachel Weisz in "Dead Ringers," 2023

    Rachel Weisz “Dead Ringers” Series Gets Haunting Teaser Trailer

    March 1, 2023
    Related Posts

    None found

    San Diego Comic-Con
      • auction
      • carnivorous plant
      • dinosaur
      • pennyworth
      • San Diego Comic-Con
    NERDBOT
    Facebook Twitter Instagram YouTube
    © 2023 NERDBOT Media

    Type above and press Enter to search. Press Esc to cancel.