A Perfect Recipe For Spreading The Crypto Cake.

There is no doubt that the world of crypto has been an interesting story in tow despite sti short life.A demonstration of this is sti market capitalization, which is currently over billion dollars,and large companies, including Tesla and MicroStrategy, have invested billions in Bitcoin.

While the investment institutions in cryptoactives come from observing a steady growth in the last time, the discussions regarding how should retail investors to address the investment cryptocurrencies have divided the waters.

A part of the library advocates to gamble all or nothing to the altcoins of small-capitalization, the more conservative the other side of the library, argue that it is necessary or ideal to invest only in Bitcoin or gain exposure through indexes.The younger generations are the most likely to invest in cryptocurrencies, the most recent surveys give an account of this: 83% of millennials millionaires have cryptocurrencies in their portfolio.

Now, could this be an encouragement to those who have not yet invested in cryptocurrencies, and earn an average salary?

Well, the traditional wisdom about personal finance, we recommend that before you create a portfolio, investors should accumulate the value of the maintenance costs of a few months in cash to prepare for troubled times.The way in which they should be saving those funds varies depending on who provides the board, but a common theme is to be paid to reward yourself.This should be the rule for a retail investor.When it comes to pay us to himself, we mean to keep the savings in cryptocurrencies to long-term, including Bitcoin and Ether.

Many experts claim that the ideal would be to maintain during the fall by between 10% and 16% of their savings to the stock.Concrent the investment based on their own convictions and tasks, in addition to dealing with loss is essential and even necessary.

For retail investors with small amounts to invest or limited access to portfolio strategies, it may appear that you do not have a lot of sense on a large scale, but that doesn t mean you should not invest.

We could even make the following analogy: invest in cryptocurrencies equates to investing in the Internet in 1993 before the bubble of the dot-com crash, and, as such, the best approach would be to consider making investments in coins, more established as Bitcoin and Ether, as these have use cases and strong communities established.

Let us not forget that cryptocurrency investments are highly speculative and should be treated as such.

In terms of the amount that should be allocated to a portfolio, there is a consensus in thinking that what the “ideal" depends” of each case and the current figures, are always below 10% of a portfolio.

At the beginning of 2021, the strategists of the banking giant of Wall Street, JP Morgan, have suggested that an assignment of the portfolio of 1% in Bitcoin could serve as a hedge against fluctuations in the classes of traditional assets, such as stocks, bonds and commodities.In January 2021, the billionaire Ray Dalio recommended an allocation of 1% to 2% for the cryptocurrency badge as a hedge against inflation.

We can also note that the cryptocurrency index funds, exchange-traded funds (ETFs) in futures or other diversified investments could be less risky and, at the same time produces many fewer benefits than individual tokens.A great alternative would be the ETF in the Blockchain space.

But back to the main point, the golden rule is to diversify the portfolio.An ideal crypto portfolio consists of coins of different categories, as the best crypto assets, stable currencies, tokens, non-fungible financial instruments decentralized, etc, The same should be part of a global portfolio with assets that are not cryptographic.

Each investor will be exposed to the risks that you are willing to run or support, and that is a typical disclaimer, but what happens when investors are not able to withstand the losses that may arise?In the year 2017, bitcoin rose to a peak of nearly $20,000 before collapsing.At the end of 2018, it was priced a little over $3,000, after having dropped out of the game to thousands of investors.

Those who are aware and consistent to follow your strategy probably benefited, as at the end of 2021, when bitcoin reached a new high close to $69,000.Those who did not become the unbelievers protagonists of a nightmare.

One way or another, the cryptocurrencies are a reality that is here to stay and will be a topic of conversation becoming more and more common.The most important thing is to analyze the why and the what we want to invest in the crypto space.

Never risk more than what you have, until the players know it, and for that reason never expose all his cards. In the world of crypto, this is not very different, the hunger of greed for gain can become very large if the promise is enticing. But the fall from the pedestal of fortune can be very painfull. And the bigger the pit in which they fell, the more you will get out. And more painful and extended recovery...

If a saver chooses Bitcoin, for example due to being the most popular cryptocurrency and for its resistance to censorship and oppression, it could easily tolerate the fluctuations of prices in the short term.On the other hand if your goal is to retire early and live on an island or in the field, the bearish markets can become a headache that no aspirin could heal, no matter what option you chose.

Never risk more than what you have, until the players know it, and for that reason never expose all his cards.In the world of crypto, this is not very different, the hunger of greed for gain can become very large if the promise is enticing.But the fall from the pedestal of fortune can be very painfull.And the bigger the pit in which they fell, the more you will get out.And more painful and extended recovery...