Diversify your investment portfolio with cryptocurrencies
Bitcoin is an exciting investment, but other cryptocurrencies have plenty to offer as well.
Bitcoin is one of the most well-known cryptocurrencies and among the largest market cap – but it's not the only cryptocurrency you can invest in. There are other coins called 'alternative coins' (altcoins), like XRP, Litecoin and Ether, gaining attention for both their potential financial upside and future technological applications. Ether hit a record all-time high price recently (Coindesk, May 2021), largely due to its integral part in enabling decentralized finance (known as DeFi), and things like non-fungible tokens (NFTs).
Ether is especially interesting as an investment. Its market cap is second only to Bitcoin (CNBC, April 2021). Its underlying technology, the Ethereum blockchain, can run applications and smart contracts, which some say makes it more useful than simply being a digital currency!
Diversification of your cryptocurrency investments is as important as diversifying your stock portfolio. If you wouldn't put all your money in a single stock, then you shouldn't put all your money in a single cryptocurrency.
Similar to trading stocks, you need to be comfortable with a certain level of risk when investing in crypto. Cryptocurrencies are volatile to begin with. It's common to see even bigger price swings in altcoins than in Bitcoin. Before investing in altcoins, it's important to do your research - this includes looking into the mission, goals, the team and technology behind the coin.
Consider investing in crypto the same way that you invest in traditional accounts like your RRSP or TFSA: set aside a small contribution each month and diversify your investment. Many people don't realize they can buy Bitcoin and other cryptocurrencies in fractions. For example, 0.5 BTC, 0.1 BTC, 0.01 BTC. You don't have to come up with all the cash for a whole coin as you can buy as much as you can afford and are comfortable with! If you're risk averse, you can test out investing in crypto with as little as $10.
Netcoins offers 7 different cryptocurrencies for investing and trading: Bitcoin, Ether, XRP, Litecoin, Bitcoin Cash, USDT & QCAD. You can start building your crypto portfolio right now! There are no fees to fund your Netcoins account, and you can do so with Interac e-Transfers, online bill payment, bank wires or deposit crypto from another wallet directly.
Cashing out is free and easy, too. You can sell your crypto on Netcoins for CAD, then transfer that money out into your bank account via e-transfer or wire. If you're in it for the long haul, you can keep your crypto in your Netcoins account but it's typically recommended to transfer your crypto to an external digital or hardware wallet.
Bitcoin is an exciting and fun investment, but other cryptocurrencies have plenty to offer as well and are worth considering for your investment portfolio. Netcoins makes it easy to build a diversified crypto portfolio, even if you're getting started with a small amount.
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