Should I Buy Cryptocurrency? Analysis And Portfolio Approach (2024)
Geoff Williams has been a personal finance journalist since around the time of the Great Recession of 2008. He's been writing professionally since the 1990s about a variety of topics, including personal finance, credit cards and loans.
Williams is also the author of several books, including "Washed Away: How the Great Flood of 1913, America's Most Widespread Natural Disaster, Terrorized a Nation and Changed It Forever" and "C.C. Pyle's Amazing Foot Race: The True Story of the 1928 Coast-to-Coast Run Across America."
If your investment horizon and risk tolerance are suitable for these investments, our analysis pointed to the benefits of investing more in stocks than cryptocurrency. However, it also found that holding a small proportion of cryptocurrency investments can also be useful.
Technical analysis in crypto is the great wall that separates profitable crypto trading from gambling and guesswork. Financial market movements can be boiled down to patterns that eventually repeat themselves, indicating entry points, price movements, sell signals, market trend and other possible future outcomes.
Most financial experts recommend limiting crypto exposure to less than 5% of your total portfolio. Crypto is considered a high-risk asset class. Limiting allocation helps manage overall volatility and risk. Those new to crypto investing may start with 1% to 2% as an introduction.
Don't overcommit. Due to its volatility, crypto shouldn't be a large part of your investment portfolio. A good rule of thumb is to put no more than 5% to 10% of your portfolio in crypto. The other 90% to 95% should be in more proven investments, such as stocks and real estate.
Introduction: My name is Terence Hammes MD, I am a inexpensive, energetic, jolly, faithful, cheerful, proud, rich person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
