Warning: Investing in cryptocurrency is very risky and you can lose all your money.
There has been a lot of hype recently around Bitcoin and other cryptocurrencies. The price of bitcoin has jumped from about $8,000 a year ago to about US$ 58,000 at the moment. This is a crazy rally in prices and represents a return of over 600% in one year. The prices have been driven by lots of speculation, media attention, and as a hedge against possible economic downturn from the COVID pandemic.
As a matter of curiosity and self education I have decided to join the band wagon. I did a lot of research online and successfully managed to buy $25 worth of Bitcoin and $25 worth of Ethereum. I did all this online and using mobile money. I invested through an online crypto exchange called Binance which allows you to buy different crypto assets. My strategy is simple. I am going to allocate less that $100 on a monthly basis to build my crypto asset portfolio over a year or so. I intend to buy and hold. This is money I am absolutely willing to lose and is separate from my other secure assets.
Cryptocurrency investing is very risky and should be approached with caution. Before you invest in Bitcoin first sort out your basic finances like getting a grip on your income, expenses, and debt. Also set up an emergency fund first. Only allocate a very small portion of your portfolio to crypto investing.
I will keep you posted as I keep experimenting with Bitcoin and other crypto assets.