If you have been following cryptocurrencies, you should know that Bitcoin has recently surpassed USD$18,000 and is moving towards its previous high of USD$20,000 while Ether is recording an impressive YTD return of 280%. Before you get too excited and start to FOMO (Fear Of Missing Out), Below are 3 important things to know before adding cryptocurrencies to your portfolio.
1) First, know the Risk of investing in cryptocurrencies. As much as you have heard about the massive gains that the crypto brings, You also need to hear about the massive risk that comes with it. Before you embark on your crypto journey, it is important to understand the risk that you will be exposed to.
- Volatility – Because the overall market capitalization of crypto is still relatively low (about $600B compared to $9T for gold) a small force can have a large effect on prices. Coupled with the fact that there are tons of speculation happening in the crypto world, you can