During a time when a lot of cryptocurrencies
seem to be falling down in price rapidly, it is important to know which ones you should not be investing your money in. Here are some experts tips, focusing on the Weiss ratings on how to avoid high risk currencies.
Do not bet on the farm
Limit your stake to just 5% of your liquid assets, no more.
Avoid parabolic surges
Although, it can be tempting, it is actually the absolute worst time that you could buy cryptocurrencies. What you should be doing is buying in small volumes when the market is down, adding small amounts when it falls even further.
The biggest does not always equal the most promising cryptocurrencies
There is no denying that Bitcoin
can make you a lot of money. However this does not mean that they always offer you the best combination of investment potential and advanced technology, in fact, it is often quite the opposite. You should be looking at newer projects such as EOS and NEO.
Don’t store your investments on an exchange
This leaves you completely vulnerable to hacks and mishaps, so instead of storing your virtual coins on an exchange
, move them to a wallet where you can control it with a personal key.
Always appoint a designated successor
It is so important that you nominate someone that you trust to have all of your login details and any keys. This means that should you forget your critical information or should something happen to you, you, or someone close to you can access your cryptocurrencies.
Weiss offers additional advice to give weak currencies a wide berth. It is also worth remembering that stocks, bonds, and cash vehicles will not experience the same volatility as the crypto market does.