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Thinking of Investing in Crypto This Year? Take These 4 Steps First

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1. Make sure you have an emergency fund

Crypto investments are volatile; the price can move up and down quickly and dramatically. As a result, it's especially crucial you have an emergency fund in place to cover unexpected costs before you invest in crypto assets.

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2. Max out your retirement investment accounts first

Preparing for retirement is crucial because you need money to support yourself. Retirement accounts also come with tax advantages that make it easier for you to make hefty contributions.

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3. Evaluate how crypto will fit into your overall portfolio

Cryptocurrency can play a role in a diversified portfolio, but you'll want to understand how it fits in with your other investments. Having the right asset allocation that exposes you to an appropriate level of risk can help you avoid outsized losses.

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4. Develop a sound strategy for cryptocurrency investing

Finally, you want to make sure you understand how to evaluate cryptocurrency investments and pick one based on its fundamentals, rather than just investing in the latest coins being discussed on social media or endorsed by a celebrity.

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