Ask yourself this before buying cryptos


Have you been looking at cryptocurrencies from the sideline but are now feeling ready to start investing? Before you jump into it and buy Shiba Inu, consider the following questions.

Why do you want to buy crypto?

Is your goal to achieve 10x returns on your investment, diversify your existing portfolio or because you are passionate about blockchain and decentralisation. Be clear with yourself what is the reason you want to start buying cryptos.

What is your risk tolerance?

Cryptos are very volatile and it’s a high-risk investment, expect to see your investments go up and down 10-20% over a few days. Think about your risk tolerance, can you stomach seeing your investments going down by 30-50%? If no, then consider starting with only a small investment in one of the blue-chip cryptocurrencies, such as Bitcoin and Ethereum. If you are young, wild and risky, consider making a larger investment and include smaller more risky coins.

Where — and how — do you plan to buy cryptocurrency?

There are so many ways nowadays to buy cryptos. You can use a crypto exchange such as Coinbase, Binance or Kraken but do keep in mind to select one that is compliant with the country you live in or are a citizen of. Alternatively, some traditional financial institutions now also provide cryptocurrency investments, such as the Fintech bank Revolut or you can buy a Bitcoin ETF from the stock market. Each option comes with pros and cons. Using a crypto exchange like Binance will likely be cheaper for you, but may be confusing for first-time investors.

What type of investor are you?

This comes back to your risk tolerance but also do you prefer to make a few investments and then hold the cryptos for the long-term or do you prefer doing more research and actively buying/selling cryptos. On the other hand, if you don’t have the time to do research and want to outperform the market while protecting your investments during crashes, you should consider Moonbit. We have built investment algorithms that actively invest across many cryptocurrencies. Cryptos are volatile, so we do our best to hold the best performing coins and reduce risk exposure during bad times.