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How to Know When You Should Invest in Crypto

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We are seeing the digital economy evolve before our eyes. For many, it’s been a time of unprecedented gains and lifestyle changes. For others, it’s been a time of major FOMO. 

Social media platforms like Reddit’s Wall Street Bets forum, and TikTok, are responsible for making waves of millennials wealthy through crypto investing. In October 2021, when people saw the SHIB price hit its all-time high of $0.000086 and all the investors that cashed in, it’s easy to feel like you’ve missed the boat. 

Moves like that have many investors wondering, “when should I get into the market?” Luckily, you’ve come to the right place. Below, we’re going to break down the 3-step process of how to know when you should buy crypto.  

Let’s get started.

You’ve saved up an emergency fund

Investing, by its very nature, comes with risk. Without the inherent risk, there would be no reward. That’s why it’s essential to make sure you’re comfortable risking whatever money you’re going to put into the market. 

One way to increase that comfort level is to give yourself the peace of mind to save an emergency fund. A good benchmark is to save up to 3 to 6 months worth of living expenses. If you’re feeling extra conservative, you can push that number out to 12 months. 

Your crypto investments should be fun. Don’t make it a stressful experience by risking the money you or your family need to live. Be smart; save up an emergency fund.  

Do your due diligence 

Even though you’ve saved up an emergency fund, you’re still investing your hard-earned money. Therefore, you must do your research before investing in any coins or tokens. There are excellent resources available via a quick Google search where you can simply type “how to buy NFT in Canada?” and numerous opportunities will be in front of you. You can also use platforms such as FTX where you can buy, track, and learn about various cryptocurrencies.

We understand the market moves quickly, but taking as much time as possible to research potential investments is key to your success. If you feel that you don’t know enough about a particular coin or token, your best bet is to hold onto your money and wait for another opportunity. 

No need for FOMO. There will always be another one.  

You’re aware of the risks

The values of cryptocurrencies tend to fluctuate much more wildly than traditional investment vehicles like stocks and bonds. While that’s the reason some people are experiencing big profits in the crypto space, you should also be cautiously optimistic for the same reason. If you put all of your “eggs” in one “basket,” the price could turn on a dime, and you might end up losing a large chunk of your investment money – if not all of it. It goes back to what we said initially: make investments you’re comfortable with. If losing a particular amount of money, or pulling the trigger on a specific coin, is going to keep you up at night, it’s best to look elsewhere. 

Know when to hold ‘em, Know when to fold ‘em 

Investing in crypto is all about getting to know yourself. What’s your level of risk tolerance? How long do you feel comfortable keeping your money tied up in a coin or token? It’s helpful to ask yourself all of these questions before getting started. Swyftx is a cryptocurrency exchange with a difference. It’s the only one that offers its customers the chance to buy, sell and trade cryptocurrencies in-app.

It’s all about information. Take time to reflect and develop a plan, do your due diligence, and invest with money you feel comfortable losing. You’ll come to enjoy the phenomenon that is the modern digital economy. 

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