Over the last five years, cryptocurrency investment has grown significantly, with 14% of Americans now holding digital assets in their portfolios, up from a reported 1% in 2016. Moreover, some industry leaders predict that this figure will double by the end of 2021. Thus, Earnity’s Domenic Carosa and Dan Schatt want all crypto investors to learn what’s critical, especially for many new investors entering the market.
There is no excuse to invest with little to no understanding of the underlying asset. Almost every coin has easily accessible whitepapers on the internet.
Online resources can help anyone brush up on their knowledge of potential future investments, from the most heavily traded to the most niche. However, if it is impossible to predict how the coin will function and, more importantly, make money, it is best to look for another investment opportunity.
Don’t put all your crypto-coin eggs in one basket.
Earnity’s Dan Schatt and Domenic Carosa emphasize a diverse crypto portfolio. Diversification is critical to any healthy cryptocurrency portfolio, just as financial advisors recommend holding multiple types of stocks and other assets.
You’ve done your homework, so take advantage of the opportunity to invest in multiple coins. For example, you can invest in various sectors that serve different use cases. Establishing a diverse portfolio will help you along your path to realizing potential future cryptocurrency gains.
Recognize the benefits of both cold and hot wallets.
You can store your cryptocurrency in an offline “cold” or online “hot” wallet. Hot wallets are ideal for novice investors due to their ease of access. However, as convenient as hot wallets are, they are vulnerable to hacking, whereas cold wallets cannot be hacked (if prepared properly). Ideally, you should keep cryptocurrency that you intend to save for a long time in a cold wallet and only a tiny amount that you might use daily in a hot wallet.