In the cryptocurrency market, sharp fluctuations in quotes are often observed. For example, on November 16th, the price of Bitcoin rose more than 10%. The sharp fall in the value of the first cryptocurrency was also observed on September 7. Assets then fell in price by more than 20% per day. Experts have explained how to secure your investment in cryptocurrencies and how to make investing more efficient.

Accurate risk assessment

The cryptocurrency market is characterized by high risk, and high risk of losing your funds, experienced investors and large funds take this into account, therefore, they do not assign more than 10% of their portfolio to work with cryptocurrency assets.

“This is a very reasonable approach. 10% is enough to experience the profit that can be made from cryptocurrencies. On the other hand, with only 10% of digital assets available, the next crypto winter portfolio will not be hit hard.

Savings funds

First of all, if we talk about investing in savings, we need to closely monitor the cryptocurrency market and buy more traditional assets, with this approach, the portfolio of digital assets can reach up to 30%.

While decentralized finance (Defi) sector assets are among the most profitable, it is better to refuse to buy such tokens to minimize risk, the expert warns.

An effective algorithm for beginners

For someone who is not a professional trader or investor and is deeply immersed in the topic of cryptocurrencies, investing more than 5% of their capital in crypto assets is risky, especially for a beginner. As well as getting involved in various fraudulent schemes.

The most effective and proven scheme is to set aside non-critical funds for investment, which should be invested in equal shares every month of Bitcoin, Ethereum, Binance Coin, or higher stocks, such tactics allow you to get good returns in the long run. Not to spend too much time investing.

Coin Top Secret “does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.

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