What is a Good Starting Investment in Crypto?
Cryptocurrencies are hitting their all time highs these days, and this shows how popular they’ve become as an investment option around the globe. The whole crypto market is now worth a little over $3 trillion.
However, the shiny success of cryptocurrencies should not tempt you to start investing in them without any prior knowledge or homework. Since cryptocurrencies are volatile, you should only invest the money you can afford to lose with Trade Wise.
Before investing in cryptocurrency for the first time, you should actually calculate how much you can start with. In this article, we will explain a few factors and things you should consider before you start investing in cryptocurrency.
Pay Off Your Debt
If you have any amount of debt with high interest-rate, you should pay it first and only then start investing in cryptocurrency. That is because ignoring to pay your debt back can make it significantly harder to pay off later on.
For example, the debt on your credit card can have an interest rate of around 16%, or even higher. So, if you continue to ignore your debt repayment, it will become harder for you to repay it in the long run.
Save For Retirement
In addition to investing in cryptocurrency and paying your debt, you should also focus on your 401(k) and save money for your retirement. That is because cryptocurrency is an investment, and the chances of you losing your money are significantly stronger as well. So, you should not rely only on your cryptocurrency investment as your retirement fund. You should diversify your retirement funds to maximize the profit, and minimize the chances of your investment getting wasted.
After allocating an emergency fund, paying off your debts, and saving for retirement, you are all set to invest money in cryptocurrency.