How To Reduce The Risk Of Crypto Investments

How can you invest in crypto intelligently? Check out the video to learn what to look for!

Welcome back to Bold TV with Philip Michael. Be sure to like, comment, and subscribe to Bold TV for other crypto news, and all things Bold.

When there's an asset class that's relatively new and there's a lot of hype, but it's not quite where it needs to be yet. You can make all this money. But there were a lot of variables. A lot of things had to go right for it to actually pan out. Regulatory things like they had to be adopted as legal versus not. With crypto, you have some of those same question marks.

Okay, so what do you do in a position like that? Now, let's say you have a very basic portfolio that split up this way, alternative assets, let's say, real estate, energy, illiquid, longer term investments you have over here, they compound the way they do.

Then you could have index funds over here. Overall, a nice steady basic portfolio that grows, let's say 10-15% a year, where the bulk of your portfolio affords you the luxury to where you can take 5 to 10% of your portfolio and you then can invest it where your portfolio doesn't go down. The bulk of your portfolio creates the hedge that allows you to do that in the first place.

Now, if you put 90%-100% of your money into crypto, you're really bullish on the asset class. Don't put all your eggs in one basket.

You want to be careful and mindful about that. But let's say you invest in a small percentage of your portfolio. If you have extra money that you hadn't seen in your budget, you can allocate that towards the risky investment case like crypto.

Another way you can do it is let's say you have a budget because you should be tracking your spending, let's say you have one night where you go out drinking and spending money, let's say you cut one off for each month and you put that towards crypto, you're not losing it. You are putting it towards that where you can basically afford to lose it.

Now what that does is you take money that was actually part of the discretionary income that you plan on spending anyway, putting it into that if it works out, it works out great, Fantastic. If it doesn't, well you learned a valuable lesson and valuable lessons and they can help guide you in the future.

Those are a couple of ways where you can invest in crypto and doing so intelligently without putting your whole portfolio and yourself at risk.

Would you invest in crypto? Let us know in the comments.

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