Our present investment market is more diverse than ever due to the increasing value of investing in cryptocurrencies.
Cryptocurrencies like Bitcoin and Ethereum are the most stable types of investment in the cryptocurrency market.
However, that could change as we move forward. When you are starting to consider investing in this market, you will find yourself wondering how much money you should invest – and where.
How to Divide Your Income to Invest in Cryptocurrencies
Historically, many investing tips for beginners focus on the need for a diverse portfolio. This remains true today, as the investment market continues to grow.
Financial advisors typically agree that newcomers looking to invest their money should follow the 50-30-20 rule. This means you should put 50% of your total income toward necessities like housing, food, utilities, and transportation.
The following 30% of your income should be geared toward discretionary spending, like going out to eat, entertainment, or other purchases that aren’t necessary.
Finally, put 20% of your income toward savings. You will take the money you are looking to invest from within that last 20%.
How Much to Invest in Cryptocurrencies
Experts in investing believe you should still create a diverse portfolio, full of low- and high-risk investments. If you are working with a financial advisor, ask them for some steady, low-risk stocks to make up at least half of your investments – and divide the other half among high-risk stocks or cryptocurrency investments.
For the next issue in my series on investing, you will learn about more specifics regarding how to invest in cryptocurrencies.
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