The Bitcoin (CRYPTO:BTC) boom isn’t over yet, as the cryptocurrency continues its upward trend. Since the beginning of the year, Bitcoin’s price has jumped nearly 100% as investors scramble to get involved in the digital currency mania.
Despite its popularity, though, it’s still an incredibly risky investment. While some investors believe it’s a gamechanger, others aren’t as optimistic about its potential. It’s also experienced extreme price fluctuations, dropping by roughly 20% on three separate occasions since January of this year.
Nobody knows what the future has in store for Bitcoin, and not everyone can stomach the risk involved in investing in the cryptocurrency. However, if you’re determined to invest in Bitcoin, there are ways to limit your risk to better protect your money.
1. Make sure you have a well-diversified portfolio
No matter where you choose to invest, it’s always wise to have a well-diversified portfolio. However, if you’re considering investing in Bitcoin, a healthy portfolio is especially critical to limit your risk.
The more diversified your portfolio is, the less impact Bitcoin will have on your overall investments if it takes a turn for the worse.
Aim to invest in at least 10 to 15 different stocks from multiple industries if you’re choosing to invest in individual