Image source: Getty Images

Here are some steps to take before you buy any crypto.

Key points

  • It’s a good idea to cover other financial bases before you buy your first crypto.
  • Cryptocurrency investing can offer high rewards, but it can also be risky. Make sure you’re comfortable with the risk before you jump in.

Over 15% of Americans have bought, traded, or used cryptocurrency in some way or another, according to Pew Research. And many more people plan to buy crypto in 2022. If you’re one of them, you may not be sure where to start. After all, cryptocurrency investing can feel overwhelming at first, and there’s a lot of information to take in.

Here are six moves to make before you buy your first crypto.

1. Top up your emergency fund

Cryptocurrencies are high-risk investments. Not only can they be extremely volatile, but it’s also a relatively new and untested market, so there are a lot of unknowns. For example, we don’t know how heavily governments around the world might regulate the crypto industry — or what impact increased regulation might have. Cryptocurrency prices have dropped by 50% or more at several points in its short history. While prices do usually trend upward again, you don’t want to…

Read more…