Investing is a great way to improve your financial situation, as instead of simply letting your money sit in your bank account, you’re finding ways to grow your assets, earn a passive income and watch those figures grow. While there are various ways to invest your money, cryptocurrency is becoming increasingly popular (hence why you’ll see it so often in the news). 

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According to a recent study, “the cryptocurrency market size is expected to grow from USD 1.6 billion in 2021 to USD 2.2 billion by 2026”, which leaves plenty of opportunities for potential investors to get involved.

What exactly is crypto? 

Crypto is “a digital or virtual currency that is secured by cryptography, which makes it nearly impossible to counterfeit or double-spend.”  There are many benefits associated with getting involved in the crypto market. For example, it allows you to diversify your investing portfolio. 

However, as with any form of investment, it's also important that you’re aware there is a certain element of risk involved. 

Top Tips For Investing In Crypto.

• Understand exactly what you are getting involved in. The first step towards successfully navigating the world of crypto is to get yourself up to speed with the process, the challenges and the intricacies of cryptocurrency. This will enable you to get up to speed with the market, allowing you to make more informed decisions when investing your hard-earned cash. This crypto investing for beginners guide is a great place to start, due to the fact that it breaks down a lot of the different terms you’ll be hearing a lot when getting into crypto, such as BitCoin and AltCoin.
   
• Diversify your portfolio. Investors are always encouraged to diversify their portfolios where possible. Failure to do so could mean that your assets are “too heavily weighted toward one company or sector”, which could land you in trouble should the market suddenly crash. As a result, you should also be aware of the different strategies you can use to diversify your crypto portfolio.  For example, you could invest in different industries, or diversify projects by location. Alternatively, you could invest in a range of different coins. It also guides you through the process of creating an exchange account that you will use to trade. 
   
• Keep an eye on the market. As an investor, you’re likely already aware of the fact that you should keep an eye on the market or sector you’re investing in. If everything is in the green, this can restore your confidence in your choices, whereas if things are dropping down, you’re able to make more informed decisions about what should happen next. This could help you apply different strategies that enable you to profit from a crypto market crash, such as identifying promising opportunities or selling to fiat currency. However, while you should aim to ‘check in’ regularly, it's counterintuitive to check in on your account several times a day. This is because little changes during this time, and the only thing you are altering is your stress levels. 
   
• Only invest in reputable companies and coins.  According to a recent study, about 100 new cryptocurrencies are launched each day. While this could indicate that you have a lot of investment opportunities at your fingertips, it's important that you’re selective when choosing which coins to invest in. In most cases, it's better to work alongside trusted, reputable companies as this will ensure your safety when investing in cryptocurrency.  If a coin sounds too good to be true - it probably is. Don’t invest your money in a company or coin you have never heard of before, especially if it has next to no online presence or reviews to speak of. You can see the trading prices for some of the biggest companies here. 
   
• Know how to avoid scams. On a similar thread, knowing how to avoid crypto scams is an excellent way to protect yourself when getting into crypto investing (and investing more generally). Thankfully, there are various ways you can achieve this goal, such as by reading buyer reviews,  and reporting any sites or advertisements you feel may be fraudulent. As crypto is a digital asset, you must also practice good cybersecurity. For example, you should add layers to your password, avoid public wifi networks, and install anti-virus software onto all of your devices. You should also change your password regularly, and avoid using the same password across different accounts (even if this makes it easier to remember). 
   
• Talk to other investors or a crypto broker.  While many investors chose to keep their information close to their chest, many will be willing to offer up general advice on how to build a strong portfolio. As a result, if you know a friend or family member who is already involved in the crypto market, now might be the perfect time to reach out and ask any questions you might have. Alternatively, you could reach out to a Crypto Broker, who will be able to answer any questions you may have or even make investments on your behalf. As they’ll have a greater understanding of the market and its nuances than the average investor, their support can help you to strengthen your portfolio considerably, thus strengthening your assets and reducing any anxiety you may be dealing with.  
   
• Never invest more than you are willing to lose. This peice of advice is applicable to any form of investment, but is particularly important when you consider that the crypto market can be incredibly unpredictable and speculative. By ensuring you do not invest more than you are able to lose, you’re protecting yourself should things take a turn for the worst.  

As you can tell, there are various different factors that you must take into consideration when it comes to entering the crypto market. However, many of these steps simply revolve around being cautious and informed. After all, these traits lead to better decision-making which can improve your financial health by minimizng the risks associated with investing in the first place.