What to consider before investing in crypto currency

A cryptocurrency or crypto is a digital currency that circulates without a central authority like a bank or a financial institution. Cryptos were made to protect you from economic crises or unfair governments that can take away your resources.

"Cryptocurrency is one of those categories of investing that doesn't have those traditional investor protections," said Gerri Walsh, senior vice president of Investor Education at the Financial Industry Regulatory Authority.

Sensationalism generates expectations, Knowing that if a crypto investor became rich easily it will interest among people to join in. Nevertheless, many people entered the cryptocurrency market with blind knowledge of the matter.

How to invest in digital assets?

Use a verified exchange crypto platform

Investing in crypto has the same effect as exchanging coins, You need to buy cryptocurrency to start your investment. However, do it from verified platforms.

-Coinbase

-Binance

-FTX

Even Venmo, PayPal, and Cash App will let you buy and sell cryptocurrency, but with limited functionality.

Here are fours things to consider before investing in crypto currency

1) Have an emergency fund:

Cryptocurrencies are volatile. Prices go up and down dramatically. Investors should have an emergency fund to cover unexpected costs before investing in assets. It is crucial to have money for emergencies before buying any cryptocurrency, Without an emergency fund, you could be forced to sell all your assets with a loss margin.

2) Find crypto that fits your portfolio:

There are a ton of options in the cryptocurrency market. However, you need to understand how cryptos fit your other investments.

Diversifying is a good idea, but investing everything in risky (most volatile than usual) assets is not the safest idea. It may be worth putting some of your money into safer bets.

3) Evaluate crypto investments

Develop a strategy for cryptocurrency investment based on fundamentals rather than social media discussions, or celebrity commercials.

Commit a long-term investment, don't plan to "get rich" quickly.

4) Avoid scams by informing yourself

Blockchain data firm Chainalysis identified $14 billion of stolen crypto last year.

Fake websites are slightly different from the main domains, and they try to mimic them.