Here's How Smart Investors Evaluate Their Cryptocurrency Investments
Investing in cryptocurrencies is a distinct but related discipline to investing in stocks and other financial instruments. Though it's fully possible to apply most of the same principles you use for thinking about your stocks to your cryptos -- like, for example, comparing your coin's performance to the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) or an index -- the best crypto investors have a slightly different approach.So let's explore what they're doing to evaluate how effective their various investments are, because it will be a good tool to have in your investing toolbox. You'll find that it's quick and easy enough to do it the same way.When you invest, it's key to appreciate whether the assets you select are outperforming something that would take less effort to do, like just investing in an index fund with holdings that mirror the entire market.Continue reading
Investing in cryptocurrencies is a distinct but related discipline to investing in stocks and other financial instruments. Though it's fully possible to apply most of the same principles you use for thinking about your stocks to your cryptos -- like, for example, comparing your coin's performance to the SPDR S&P 500 ETF Trust (NYSEMKT: SPY) or an index -- the best crypto investors have a slightly different approach.
So let's explore what they're doing to evaluate how effective their various investments are, because it will be a good tool to have in your investing toolbox. You'll find that it's quick and easy enough to do it the same way.
When you invest, it's key to appreciate whether the assets you select are outperforming something that would take less effort to do, like just investing in an index fund with holdings that mirror the entire market.
