Cryptocurrency

What is the correct amount of Bitcoin to start an investment portfolio?

While Bitcoin continues to gain popularity, more and more people are wondering what is the correct amount of tokens that are needed to start investing. Although in reality there is no magic formula to know that, yes, you can follow some of the recommendations of experts. The first comment comes from Sunayna Tuteja, director of digital assets and technology of accounting distributed (DLT) at TD Ameritrade. She participated in the conference TD Ameritrade LINC in Orlando, Florida, on Wednesday. During his speech, he explained why he could not separate Blockchain of Bitcoin. “In reality, it is very difficult to decouple Blockchain and Bitcoin (…). On the one hand, how do we market the value of DLT and Blockchain to bring more innovation to the traditional markets? At the other end of the spectrum: How to take advantage of this asset class rising?”. He makes this clarification for those investors who want to enter the industry trying to separate the two elements. It is important that, before starting an investment, you know well in what exactly you are going to invest. Therefore, before recommending an amount of BTC to start, it is essential to warn that I know the first thing you need is to be informed about the topic. Other items to take into account before investing is the large volatility and the low correlation with other asset classes. However, the benefits of Bitcoin far outweigh these points, and it is for this reason that every day more people want to bet on the digital currency.

Where and how to start

But, after you learn the criptomoneda and analyze the risks, how to launch an investment portfolio of Bitcoin? As Ric Edelman, founder of Edelman Financial Engines, seems to have the answer. According to the expert, if you are given an allocation of 1% to BTC, it would be a safe margin to receive profits without being exposed to much risk. This means that you should pass 60% stocks and 40% bonds 59% stocks, 1% in Bitcoin and 40% in bonds. “We need to recognize that the allocation of the 1% is not going to damage materially to a client. Not stop them from achieving their financial goals and will not harm your personal finances”. This is a recommendation rather conservative. However, it demonstrates that it is not necessary to risk a lot when you are starting up in the industry cryptographic. In fact, it is best to complement traditional investments with Bitcoin, not to eliminate them entirely. In addition, Edelman also warned about the risks of not knowing well enough at the digital coins before betting on them. “Do not consider investing unless you understand the technology. Otherwise, you are not investing; you’re spending”. Finally, he recommended to investors that they are going to enter the industry cryptographic that should be approached with a long-term mindset. This means that you must be prepared to withstand the volatile times, including the possibility of a 100% loss of the digital currency. The following two tabs change content below. I am a student of International Studies, interested in new technologies and their impact on the world. A true believer that tenacity is the foundation of success.

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About the author

Caroline W.

Caroline W.

Caroline is passionate about learning languages, cultures and the Internet. She has years of experience working at international online advertising projects. Growing interested in Bitcoin and cryptocurrencies in late 2018, she joined CurrencyMarket24 as a writer.

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