Cryptocurrency are an innovative investment plan, with quite a little information for the ultimate analysis. However, there are some straightforward instructions to keep in mind prior to entering this high-risk zone. It is needless to say that, all the investors want to know the rules and what to expect in 2022.
One thing you must know is that a big portion depends on government policies. China, which is the world’s biggest cryptocurrency market, debarred all dealings in September. Experts state that, as blockchain technology achieves broader practice, this position will only segregate China from the rest of the world. In India, the government has worked on a regulation to control the use and trading of cryptocurrencies.
Here are some rules to follow
A good number of cryptocurrency have flowed 5,000-6,000% in the previous few months. Though you have a high-risk desire, don’t invest more than 10-15% of your entire portfolio in cryptocurrency. You need to invest a small amount.
You need to remember that even a bluechip like Bitcoin is down 25% from its November high of Rs 54 lakh. Deal with this market only if you can stomach extreme variations.
You should invest through a recognized and reliable platform so that your money does not get jammed if there is a controlling hindrance or the agent company goes under. Investment with the help of a foreign platform may need larger compliance on the tax front.
You need to focus on blue chips. Just like the stock markets, the crypto market also has blue chips, mid-caps and penny coins. Don’t make the mistake of buying doubtful coins just because they are valued quite low. Bigger coins may be expensive but at the same time, they are more stable. Bitcoin and Ethereum are the blue chips of the crypto market and lead the entire market status as well.