Perhaps the most fundamental question you should ask yourself before making a cryptocurrency investment is why you’re doing it. There are myriad investment vehicles available, many of which offer greater stability and less risk than digital currencies.

Are you interested simply because of cryptocurrency’s trendiness? Or is there a more compelling reason for an investment in one or more specific digital tokens? Of course, different investors have various personal investment goals, and exploring the cryptocurrency space may make more sense for some individuals than for others.

To start, begin by taking a comprehensive approach to evaluating your personal risk appetite, investment goals, and portfolio diversification. You may be interested in cryptocurrency as an alternative asset to what you already hold. You may also be interested in potentially higher returns with the understanding that this reward comes with potentially higher risks. Before investing in cryptocurrency, gain a personal understanding of what you hope to achieve as this will help set the course for your actions.