Inflation is causing cash savings to lose value, leaving investors hesitant to invest in stocks or highly volatile cryptocurrency. However, not investing is not a solution, as inflation is a permanent issue. Investors should hold crypto for the long term, and use dollar cost averaging to buy during dips in the market. Before investing, consider debt, monthly outgoings, and whether it is affordable to lose the money being invested. An example portfolio for beginners could include Bitcoin, Ethereum, Cardano, Solana, and XRP, which all have a wide adoption and solid teams working on solving real-world issues.
Investing in Crypto vs Stock Market: What to Do with Your Savings During Inflation
Inflation has been creeping up, now over nine percent, and your hard-earned savings are slowly losing their buying power. The question is, what should you do with your money? The stock market is down, and crypto is highly volatile. Simply saving cash is not an option as inflation continues to eat away at it. In this video, we will dispel some myths around investing and give examples of what you could do with your money.
Should You Invest in Crypto or the Stock Market?
By the time you watch this video, the market may have changed as it’s highly volatile. However, inflation is here to stay, and central banks worldwide are tackling it by raising interest rates. You cannot just save your money aside because savings lose value over time. Investing in crypto is one option, but also investing in the stock market or simply finding other investment opportunities.
Buying Opportunity for Crypto
Alex Becker, a popular investment influencer, advises buying millions of crypto now. However, this is not financial advice, and you should approach all investing decisions with care. Crypto prices have fluctuated with energy crises, geopolitical uncertainty, and other factors affecting its value. Currently, we are dollar-cost averaging into crypto and allowing for a local bottom for Bitcoin and other cryptos. The popularity of cryptocurrencies is solidified with amazing teams, white papers, and solving real-world problems.
Before Investing, Address Important Financial Obligations
Before investing, make sure you address all your bills, debts, and obligations. Ensure that you can comfortably afford to invest without risking your financial security. A good way to approach it is to assess the money you can afford to invest while maintaining your food, clothing, and shelter expenses.
Example Portfolio for Beginners
For beginners, investing in Bitcoin, Ethereum, Cardano, Solana, and XRP is an excellent idea. These are real-world solutions with amazing developers and are widely adopted. Investing in any currency must be approached with caution, but the above mentioned five currencies are a great starting point.
In conclusion, investing is a personal choice, but you must approach it with caution, especially in highly volatile markets. Take your time to analyze before investing, untangle your financial obligations and plan for the future. Inflation may not go away tomorrow, but you can still invest smartly and in optimal ways to secure your financial future.