I am not a financial adviser and this is merely my own opinion.
Advice I got when it comes to stock.
Say that you want to invest 20,000 in a specific stock. The stock seems to be going down in price. You are not sure if this is an all time low or if it will go further down.
- Buy for 5000 today. Wait for some time and buy again. Keep on doing this until you are fully invested. The time frame can be days, weeks or months. This is long term investment strategy and it is a company/cryptocurrency that I believe in.
By this method you are taking less risk.
How that could have been used in the cryptocurrency space. XRP started to go down after the all time high. Instead of investing all your money at that point. You start with a small amount and then wait a few days/weeks/months. Even if you miss the deepest part of the dip your average price is OK.
Another advice I got when it comes to stocks is this.
- Spread out your risk in different types of stocks.
Translated to crypto this would mean that you have a portfolio of at least 5 different cryptocurrencies.
Risky to have €100 in BTC
Less risky to have €20 in BTC, €20 in ETH, €20 in XRP, €20 in ADA and €20 in NEO.
None of us can predict the future and spreading out the risk leaves us less vulnerable.
Another way to lower risk is to invest in cryptocurrencies that are popular in different parts of the world. The more you diversify the lower the risk. Find bock chain technology that solves different kinds of problems.
But what about if something happens to cryptocurrencies and block chain technology. Do not forget that there are stocks, funds and other investments you can do.
By having a diverse portfolio you are taking less chances.