Cryptocurrencies: 7 golden rules for investing while limiting risk – 09/18/2022 at 10:00 am


How to limit risks with cryptocurrencies. (© cc Antana)

Avoid leverage effects, compose a balanced portfolio (at least 50% bitcoin) protected by two encryption keys… Le Revenu explains how to optimize your investment in digital currencies, as a form of diversification with a long-term perspective.

1

. Diversify your portfolio

As with stocks, have your back covered by composing a balanced portfolio, made up of at least 50% “safe” stocks, such as bitcoin and ethereum.

Complete with a quarter of stablecoins – low volatility.

2

. Bet (a little) on emerging cryptos

New digital currencies appear every week.

While most are doomed to disappear quickly, a few will be the bitcoin of tomorrow.

Do not hesitate to buy for a few tens of euros of these cryptos.

3

. Focus on the medium term

You know the principle that you only invest the money you don’t need.

It also applies to cryptos. As these are likely to experience sudden price variations, it is better not to be forced to sell at the slightest alert and to be able to wait for a rebound.

4

. Avoid leverage

The high volatility of cryptos makes it necessary to minimize risks.

If some trading platforms offer to invest short, or even to borrow in order to take advantage of the leverage effect, the consequences can be catastrophic in the event of a violent dropout.

5

. Invest in related values

There is a good way to

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