Introduction
Bitcoin reaching a new all-time-high show that Bitcoin is still what people think of it. However, after hitting an all-time high, the steep decline in the price reminds us that it is still one of the most volatile assets to invest in.
These days, the day starts with Crypto-Curious people talking about Cryptocurrencies and their price fluctuations.
This makes people wonder – Whether or not to invest in Bitcoin?
And, if they do!
How much of the total investment should be in Bitcoin?
This article will take up some of the financial leader’s advice and see what percentage of the total capital should be invested in risky assets like Bitcoin and other Cryptocurrencies.
How Much Should You Invest In Cryptocurrency?
The more Bitcoin keeps hitting new all-time high prices; the more countries are willing to adopt it. As a result, many investors are now thinking of including Bitcoin in their investment portfolio.
However, figuring out a safe amount to invest in Bitcoin is challenging.
There are several marker leaders that suggest different propositions to invest in Bitcoin.
For instance:
1. Theresa Morrison: 5%
Theresa Morrison, CFP at Beckett Collective, states – 5% is a good investment in assets like Bitcoin. Once the investment crosses 5%, the market starts seeing uncertain curves.
2. Michael Kelly: 1%-2%
Michael Kelly, CFA at Switchback Financial, states – depending on the situation, low investment in a highly risky asset can open doors to new opportunities. And 1%-2% is a great investment in new opportunities.
3. Ryan Sterling: No More Than 3%
Ryan Sterling, the founder of Future You Wealth, believes that investing 3% in risky assets is more than enough. Restricting yourself to this percentage also makes the liquidation quite easy.
Understanding Bitcoin For Your Investment Portfolio
The investors who are willing to jump into the Crypto investment market first need to understand how the market works. For that, they need to understand the ins and outs of the market.
Do thorough research on the market before making an investment decision. If you are not getting reliable information, seek help from Crypto investment firms like bitcoin profit. They can offer you all the information you need.
Still, Worrying About Making a Wrong Investment Decision?
We understand the pain of not being able to evaluate the market. If you have a problem gauging the depth of the Crypto trade market, perhaps the following advice will help you out.
- Invest $10 in Bitcoin.
- Divide the budget over the course of time: 1 month, 3 months, 6 months, and a year.
- Choose the best platform to invest in.
After the course of one year, you will have all the necessary information you need to make your investment decision.
Factors That Matters!
Now that you know almost everything to make your investment decision, the only thing to consider is the factors. The factors that we are about to mention below affect the investors on an individual level.
- Risk Tolerance: The amount of capital you are prepared to lose in the investment.
- Timing: Finding the best timing to enter and exit the Crypto trade market.
- Profit Tolerance: Once you start getting profit, you wait in the market to make more. However, this can backfire after the market breaks down. Profit tolerance is a threshold where you are satisfied.
- Diversification: The number of assets also decides the amount of investment you can make in Bitcoin.
- Change Of Mind: Finally, change of mind. The Crypto market is volatile. You might change your mind after seeing the bad performance of your assets.
So, How Much Should You Invest In Bitcoin!
After going through experts’ advice, this is what we believe.
Considering how volatile the market is, you must invest from 5% to 10% of your total capital. Now this percentage is what we believe is right for us. You might find this percentage to be extreme in your case.
You don’t have to feel pressured by what percentage we speak. If it is you who knows better your risk tolerance and how much you are prepared to lose.
