If you're ready to make some solid bets in the Crypto market that don't involve buying random digital coins whose value hinges on Elon Musk's tweets, this short and simple post is for you.
The Cryptocraze has some fans calling Bitcoin and NFTs as the investment of a lifetime. But through my own efforts to learn about this market over the years, Investing experts and financial and tech journalists tend to agree, that while yes Crypto is not going away. It is undoubtedly becoming a bigger part of our lives, there's a tremendous amount of investor misguidance out there. Too many people are making financial moves off of pure adrenaline and speculation which last I checked is not how most people build wealth.
But I know, we are curious, it's only natural. Many tell me that they want to understand and how to engage in this market in a clear substantive way. They have a question, that can we be more measured and emotionally intelligent when participating in the Crypto industry. The answer is yes. Here are four ways.
1: Explore Career Opportunities in the Crypto Market
Now investing in your career by spending some time in the Crypto industry may be a worthwhile experience, especially right now. There are way more choices than ever before. Crypto related job opportunities surged 390 percent in the country between 2020 and 2021 and that's according to Linkedin. That's about four times more than job listings in the broader tech industry.
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Now it may mean working for a startup which may not be as established, but venture capitalists did pour 33 billion dollars into new Crypto and Blockchain companies last year. Now research a company before joining to see how well funded it may be. It could provide some key intel when it comes time to negotiate your salary.
2: Consider Stable Coins
You know one of the growing concerns about Cryptocurrencies is their volatility. But a new digital coin has arrived and unlike its peers, this one promises less fluctuation and some actual underlying value. It's called Stablecoin and it derives its price from the value of another asset and that tends to be the US dollar. Stablecoin is sort of like chips at a poker table. So instead of buying Bitcoin or any other Cryptocurrency outright directly with cash, you first pay dollars to buy Stablecoins on any Crypto exchange and then use those Stablecoins to then buy the Cryptocurrency.
3: Engage with the Blockchain
A third idea is to engage with Blockchain. Now the Blockchain is the digital ledger that facilitates and records Bitcoin transactions. But the use cases I have found for this technology transcend Bitcoin. More broadly Blockchain, thanks to decentralization and Cryptography, can create a whole lot of efficiencies and provide security to different markets; from insurance to real estate, banking and legal. So for you, if you're interested in investing more time to learn about the Crypto market, my first stop would be to take a deeper dive into the Blockchain above all. It can be time well spent if you're looking to enhance your business or even learn how to leverage the technology wherever you're working.
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Now sidebar, as an investor myself I am bullish on the concepts of the Blockchain. Now I'm not giving any actual investment advice here, but I personally am investing a very small portion of my retirement savings in a fund called ‘Block’ that comprises established companies that we know like Square, Paypal, Nvidia that are investing in Blockchain technology.
4: Top Off at 5% and Diversify
Now speaking of investing, finally if you still want to buy Crypto, my advice is this, top off at five percent and diversify. Invest in Crypto if you like, but just because this is the new asset class doesn't mean we should abandon tried and true methods to portfolio management. For starters, don't bet the farm like some of us are doing. Limit your holdings of these so-called alternative and relatively high risk assets like Crypto but also Real Estate and Startups to no more than five percent of your total portfolio.
Finally invest in a bunch of currencies, no matter how confident you may be in a particular digital coin. Remember that diversification helps to mitigate losses over time and you don't want to be like some of those early investors during the dawn of the internet back in the late 90s who went all in on a website known as pets.com. If you like what you're reading, please subscribe to our newsletter through email and leave us a comment down below. Also don’t forget to share this valuable piece of info with your friends and family as well.
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