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Many people fear the cryptocurrency market because they don’t want to lose their precious money and we understand that. But, it is only risky to invest in cryptocurrencies when you are unaware of the risks.
The crypto market is considered a variable income investment, that is, its returns vary according to the current market, just like stocks.
Unlike variable income, we have fixed income where it is possible to have a more accurate forecast of the return on investments and terms. Therefore, the first step to investing in cryptocurrencies is to understand your investor profile.
If you want to enter the crypto world, but you still don’t feel financially secure, let’s take a step by step of what you need to do to organize yourself financially and make that leap!
Let’s see this step by step?
Have control over your finances, especially departures
The first step to getting financially organized and investing in the crypto world is to have knowledge and control of your financial life. It is essential to know your inputs and outputs month by month.
So you should start recording your earnings and how you are using your money. Start doing this in the easiest way for you. You can use an application or a financial spreadsheet, the important thing is to get started. With this information in hand, let’s move on to the second step!
Balancing your finances and staying in the blue should be your priority
If during the previous exercise you notice that you are spending more than you should, this is a warning sign. It would be irresponsible for you to go out and buy a variety of cryptocurrencies, not knowing how you will pay your card bill, for example.
Here it’s all about consistency and that should be your priority. If your lifestyle fits within your budget and you still have some money left to invest, this is the green light we need to get started in the crypto world.
Understand that even with installment debts (such as home, cars or loans) it is possible to invest in cryptocurrencies, as long as these debts are controlled in your budget and you have a financial reserve.
Yes, it is important to have a financial reserve!
It is the financial reserve that will give you the security to continue your investments (and take advantage of opportunities) even when some unforeseen happens in your life.
The main point of the financial reserve is liquidity. It is important that you can have access to this money within hours. Some cryptoassets already have high liquidity as a feature of their project, but be careful when choosing where to build your reserve.
With a reserve in hand, you will not need to modify your investments or redeem or sell an investment earlier than desired to remedy a personal unforeseen.
Study about the cryptocurrency market!
As a final recommendation, we highlight the importance of studying cryptocurrencies. Select some good sources of information and avoid reading everyday news that exaggerates negatively about the market.
For that, go back to the fundamentals. Read books about the emergence of cryptocurrencies, watch documentaries, get in touch with people who already invest in the market and get acquainted with this world.
You can also open an account on an exchange, as is the case with us, to familiarize yourself with the procedures, the system and clarify your doubts as they arise.
After today’s article, start by writing down your improvement points, make a plan and get started! The crypto world is for you too.