A Beginner’s Guide On How to Buy Bitcoin and Other Cryptocurrencies (3 of 3)

4. Practice Safe Storage

Coinbase and other platforms allow you to store your investment safely in your account. However, if you would prefer even more security, you can place them in a cryptocurrency wallet. There are different wallets to choose from, with varying degrees of security. The platform you use might offer a wallet option (although PayPal and Venmo are examples of ones that don’t) or you can opt for third-party software or even cold storage on an offline hardware device.

Is crypto a sound investment for me?

Just like when you’re investing in the stock market or real estate, always do the research beforehand. You should also make sure you’ve paid off your debt obligations. Financial advisors usually recommend not investing more than 5% of your portfolio into crypto. It’s also a terrible idea to dip into your retirement fund. The golden rule is to invest only what you’re willing to lose, even if that means the entire amount of the investment. For beginners, Bitcoin or Ethereum are good places to make an initial investment. Even though they experience massive price swings, most experts believe they are the cryptos that will still be around decades from now. Plus, a small investment in a highly volatile digital currency is a healthy way to diversify your overall portfolio.