If you have decided to buy crypto, you might have the question of “how much money should I actually invest into crypto?”. This blog post shows you the cold hard truth when it comes to how much money somebody should investing in crypto.
Be Aware of What You Are Doing
As soon as you decide that you want to invest in crypto, you have to remind yourself what you are actually doing. If you are only investing in a certain coin, then you are definitely speculating and not investing. You are basically hoping that the value of this coin will go up in the future.
The main problem with this is that most people start to get interested in crypto as soon as they see that the value of coins increased significantly. The likelihood that crypto will keep going up in value after a huge pump is not so likely, and a decrease in value can happen pretty quickly.
Nevertheless, when you are at the beginning of investing in crypto, it is better to have a foot in the market than waiting to invest. This is because if you are invested in the market, you start to check the value of coins more frequently, and you start to learn more and more about the whole crypto market and its technology.
Make a budget
Having a budget is extremely important before you invest in crypto. This allows you to track your expenses and determine how much money you are currently willing to invest in the crypto market.
Having a budget is pretty easy. You simply look at how much you earn every month and subtract your monthly expenses + emergency saving. You just have to be careful that you include all the expenses and that the numbers are correct. If it happens that you have money left after you have made your budget, you can consider investing the money that you don’t need.
Don’t borrow money
If you have set up your budget, and you realize that you don’t have money to invest, then you should definitely NEVER borrow money from a friend, family member or get a loan from a bank. As I have already mentioned, investing in crypto is speculation and if you speculate with money that is not yours then you are acting irresponsibly and can cause a lot of trouble for your future.
I understand you might think that you are missing out because you have seen a lot of friends that have incredible gains, but if you destroy your finances with one stupid investment then you are worse of than before and you have nothing to show for yourself but losses.
Only invest money you can lose
If you have set up your budget, and you see that you have money left over after you have paid all your bills and savings for emergency reasons. Then and only then you can consider investing the money that you have leftover in crypto. In case you have no savings left over, you have to work harder and smarter to get money to invest.
You have to take the money that is leftover and be happy with the fact that you could lose all the money that you want to invest in the crypto market. This stoic mindset does help you to not freak out when a dip happens or when you 10x your money in a short period of time.
Should you invest all your money?
This is up to you if you want to invest all the money that you could lose, but since you have come so far in this blog post, you know what it is all about. You can invest all your money that you are willing to lose, but you can also consider diversifying your portfolio with other investments like stocks, bonds or real estate.
This makes your portfolio more stable and is therefore not prone to huge losses due to one dip in one market.