For those who are thinking of enhancing their investment portfolios, cryptocurrency is often considered as an option. After all, cryptocurrencies such as Bitcoin have enjoyed huge rises in value in recent years, and while there may be some systematic volatility built into them, they’re still highly popular due to their potential as an example of technological innovation. This blog post will explore how a potential investor can get their crypto portfolio off the ground – and how they can help to ensure that their portfolio is one that is both profitable and sustainable.
Too late?
In the crypto world, there’s something of a perception that cryptocurrency has peaked and that there is no point in getting involved in it any more. The reason for this view is often rooted in the accurate enough observation that the price of bitcoin in particular skyrocketed over the course of the last decade. It managed to multiply several times over the course of 2017 alone. As a result, some people caution getting involved in crypto on the assumption that a trading strategy of “buying low and selling high” can’t be followed due to the “high” having – allegedly – already been reached.
However, that doesn’t mean there’s any reason to avoid investing in crypto – even if its value is high. That’s because past performance isn’t always an indication of future performance and just because crypto has skyrocketed once doesn’t mean that’s the only time it will happen. While it’s impossible to say with certainty that bitcoin will never again drop in value, it’s also impossible to say that it will never rise spectacularly again – so it’s important to make crypto investment decisions based on other factors and not just on past performance.
Tools and add-ons
With that in mind, it therefore becomes relevant to think about the sort of tools and add-ons which can be useful to those who need to get a helping hand to ensure they can rise up the crypto ladder. For those who are at the start of their crypto career, it makes additional sense to think about the extra services which can help deliver advice on direction and enhance profits. After all, those who are just starting out in the crypto sphere don’t have the level of institutional knowledge which experienced traders have, and they need something to supplement it as a result.
There are all sorts of tools out there, including everything from price chart monitors which assess how the market is doing to tools including Bitcoin Circuit which allow for crypto robo-trading. And one of the most important tools is, in fact, Google. By ensuring that you do regular research into the fluctuations of the crypto markets, you’ll be able to make effective decisions on how those markets are performing and how they pertain to your crypto investment aims.
Where to buy
In most cases, the practical process of acquiring cryptocurrency needn’t be hard. That’s because there are plenty of crypto platforms out there that are more than willing to sell you the cryptocurrencies you need to get your portfolio off the ground. Whether you’re planning to buy an established cryptocurrency such as Bitcoin or Ethereum or whether you’re hoping to acquire a token in a less well-established crypto coin which you’ve heard about through a media report or similar, there’ll be an exchange out there for you.
However, some wannabe crypto traders may find that they’re not actually able to buy from the sorts of locations that most other traders can. If you find that you can’t sign up to a crypto exchange it could be worth looking for a peer to peer crypto lender such as Paxful. The advantage of a site like Paxful is that it accepts all sorts of payment methods, so if your preferred method is not listed on your main crypto exchange, you can always explore such a platform which can hopefully help you get access to the market.
If you’re aiming to create a crypto portfolio it makes sense to think about all of the different options that this article has outlined. Once you’ve got over the perception that it’s too late to invest in cryptocurrencies, it’s then worth investigating which tools and add-ons make the most sense for your crypto investment business. And if a mainstream crypto exchange isn’t right for you, don’t worry, it’s possible to invest in crypto using a whole host of other platforms, including those that operate on a lending basis and hence have less strict criteria.
Disclaimer: This content does not necessarily represent the views of IWB.