We at “Toys2WorkCrypto.com” aren’t here giving investment advice but are merely providing information about crypto and other things that you could easily get in a classroom or from your banker or on the Internet.
The challenge with crypto is that so many young people (over 18 usually) can get an account and start trading big money with very little experience with money and no counselling from an investment advisor or banker.
In the old days before online trading, if you wanted to buy a stock or bond you would need to have a fair bit of money and then you would go to a stock broker and he/she would give you advice on what to buy and you would pay commisions on all buys and sells.
We cut out the stockbroker middleman 20 or so years ago and now we are cutting out the banker completely and allowing people to become their own bank basically and all mistakes and good moves will be our own.
But everyone is told to know your risk tolerance when buying any investment or putting money into any kind of opportunity and get rich/passive income idea.
So again, don’t rely on this site for all your crypto information as there are millions of places to get advice as well.
Having said all that…lets continue.
Everyone will tell you to not spend more than you can afford to lose and diversity by putting a little money in safe investments and some in other ones if you like the level of risk.
people are always told especially with risky investing is don’t spend what you can’t afford to lose.
So its important to do your research and ideally go through your banker or investment advisor before you buy stocks or crypto.’
But these days people are just diving into crypto and that isn’t a terrible idea if you go slow and you go smart.
Every person in this game will tell you to make sure the family knows what you are about to do and everyone understands what is at stake.
You should never spend “scared money”. This means if you are biting your nails when you go to bed at nite then maybe you should not be in this type of risky investing.
People have lost their houses and comitted suicide in the past on investments that had high payouts but extremeley high risks.
Bitcoin is the one that started it all and is considered like the Blue chip stock in comparison to the stock market.
There are no dividends but many believe that since its been around the longest that people trust it and it is the gold standard and will have the best future.
Keep in mind that there are two coins on most markets called bitcoin. One is the original Bitcoin as part of the Bitcoin foundation and is selling for near $50k in 2022 and there is Bitcoin Cash run by a private company and is selling for about $500.
I explain this in the whats crypto section but basically there seems to be infighting in just about every cryptocurrency.
The people had bitcoin had some issues and so one person branched out and set up their own spinoff of Bitcoin.
Ethereum has two names as well because of some controversy where money was taken out so to avoid more problems a new change or fork was created to allow Ethereum to continue as it did before the event.
Also if you are nervous about buying the fluctuating crypto coins you can buy one called US D which is more stable and is therefore actually called a “stable coin” because it follows the movement of the US dollar.
Now some of your options with crypto are these and its always best to diversify and not put all of your financial eggs in one basket.
- buy a small amount of “Bluechip” type safer coin like Bitcoin and hold onto it for years (long term)
- buy a small amount of USD coins which are tied in to the USA dollar
- buy a small variety of coins after doing some research
- buy one or two low priced NFT art pieces or avatars to get some experience
- trading is where the risk comes in (buying and selling)
- heavy risk is in Yield farming, any type of leverage, mining etc
(under construction Dec 16, 2021)