How much should I be investing in cryptocurrency?

The cryptocurrency market is volatile, and the future of cryptocurrencies remains uncertain. As such, it's difficult to know how much you should invest in cryptocurrency at any given time. However, there are a few things that can help you make smarter decisions about your investments — including tracking them and making sure that they align with your investment goals.

If you're going to invest in crypto, don't go all in

Before you jump on the cryptocurrency bandwagon, it's important to remember that investing in any market comes with risk. Since cryptocurrencies are so volatile, it's important not to invest more than you can afford to lose—especially if you're going all-in.

If you want to minimize your investment risk, then diversification is key. A single investment has a higher chance of failure than multiple investments spread across different industries and asset classes. For example, if your portfolio includes both cryptocurrency and stocks from different companies (like Apple), then even if one of those businesses fails completely (or even goes bankrupt), there's still hope for the other half of your portfolio to keep growing and making gains in value over time.

Think about why you're investing

A good place to start is by thinking about why you're investing in cryptocurrency. If the answer is "because my friends invested and they made money," then it's time to take a step back and look at what your goals are.

If your goal is to get rich quick, then crypto isn't for you—at least not right now. Cryptocurrencies are still relatively new, with new coins popping up quite frequently and many of them disappearing just as quickly (if not quicker). Additionally, there's no guarantee that any given currency will hold its value over time; this may seem obvious but it's easy to forget when we're caught up in the excitement of seeing our portfolio grow. So while cryptocurrencies can—and have—provided huge returns for investors who were willing to take on risk, those returns aren't guaranteed going forward!

If your goal is more along the lines of diversifying your investment portfolio or hedging against other investments losing value during a downturn in markets, then cryptocurrencies might be worth looking into further (but make sure you understand the risks!).

Track your investments and make adjustments when necessary

• Track your investments and make adjustments when necessary.

• Don't be afraid to cut your losses, but don't be afraid to double down on your winners.

Think critically about your investments

If you're investing in cryptocurrency, it's important that you do some research and make sure your investment is sound.

Do not invest more money than you can afford to lose. Cryptocurrency is very volatile and speculative—it's possible your original investment could change by 99% in a day. Only invest what you feel comfortable losing, because the world of cryptocurrency has been unkind to many of its investors in the past few years.

Even if you understand cryptocurrencies, don't make any decisions without first reading up on them and learning about their history and current events surrounding them. The crypto community can be a strange place where many people promote themselves without knowing much about the coins they're promoting; this makes it hard for newcomers to find reliable information about which coins are good investments and which ones aren't necessarily worth investing in (or were even scams).

The whole point of investing is to make money, but it's also important to keep a level head about the risks involved. Always remember that you could lose everything if the market crashes or if someone hacks your account. This doesn't mean you should never invest in cryptocurrency; just be sure to think carefully about how much risk you're willing and able to take before doing so.