The newspaper said, in its translation, “Arabic 21“Many people are interested in investing in digital currencies such as Bitcoin and Dogecoin, which have become the talk of the day on the Internet. But to find the right choice for you, you must ask yourself these questions first.
1. Do I understand this field?
The newspaper said that one of the basic rules when investing in stocks is to never buy shares of a company that does not understand its business model. In other words, do not invest in a company if you are not sure how to generate or manage its money, and the same idea applies to cryptocurrencies.
At the most basic level, digital currency can be used to pay for various goods and services, although it has not yet been widely accepted. Cryptocurrencies are based on a technology known as blockchain that holds digital transactions. Thousands of digital currencies are traded daily, some of which are more popular than others, such as Bitcoin and Dogecoin.
The newspaper warned that digital currency is volatile; That is, its value could rise to record levels, and the opposite might happen as well.
The same applies to common stocks, but the only difference is that stocks have been around for a long time, while the cryptocurrency is a new concept and its market developments are unpredictable. Make sure you really understand this area of heart before adding digital currencies to your portfolio.
2. Is it in line with my strategy?
If you are an investor, it is important to have a well-thought-out strategy for building an investment portfolio that allows you to grow long-term wealth. Investing in cryptocurrencies may align well with your strategy, especially if it involves building a diversified investment portfolio.
However, if you want to invest in digital currency just because you hear about it constantly or because you think it is a smart investment, then you should give up this idea.
3. Do I know how to purchase them in a cost-effective way?
The newspaper pointed out that digital currencies can be purchased through its own trading platforms such as “Coinbase”.
These platforms charge various fees, which are in the form of a percentage of the price of the digital currency that you buy. These fees can accumulate; So do your research and make sure it is a cost-effective investment option.
If you are a risk-free investor looking for a way to diversify your stocks, you may find that cryptocurrency is a good bet. But if you are a regular investor, make sure that you do so for the right reasons and under the right circumstances.
The newspaper pointed out that it may be tempting to be led by what is being circulated about digital currencies and add them to your investment portfolio, but make sure that this step is really appropriate for you. The last thing you want to do is make a hasty decision, invest a large amount in digital currency, and miss the opportunity to make investments that may be more suitable for you.