blog-post
Author: BBS Team
Senior Editor

Finance

2021-11-19

things to know before making a cryptocurrency investment

Investing in cryptocurrency can be as easy as a few taps on your phone, and with crypto all over the news and coming up in conversations with friends, it's tempting to dive right in.
However, depending on your financial situation and appetite for investment risks, crypto might not be appropriate for you right now - or ever.

1. Financial Safeguards

The cryptocurrency market is a volatile one, so be prepared for ups and downs. You'll see dramatic swings in prices. If your investment portfolio or mental wellbeing can't handle that, cryptocurrency might not be a wise choice for you.
Cryptocurrency is all the rage right now, but remember, it's still in its infancy. Investing in something that's new comes with challenges, so be prepared. If you plan to participate, do your research and invest conservatively to start.

2. Get educated

Before you invest one dollar, learn about cryptocurrency exchanges. These platforms provide the means to buy and sell digital currencies, but there are 500 exchanges to choose from, according to Bitcoin.com. Do your research, read reviews and talk with more experienced investors before moving forward.

3. How to Store

If you buy cryptocurrency, you have to store it. You can store it on an exchange or in a digital "wallet". While there are many different kinds of wallets, each has its own benefits, technical requirements and security. As with exchanges, you should investigate your storage choices before investing.