Top 3 Tips to Win at Investing in Cryptocurrency
I am writing this article to share some of the most important cryptocurrency investing strategies that nobody else is talking about.
Disclaimer: There is no 100x lifechanging investment advice promised within this article.
As I mentioned before, nobody is talking about these strategies you need to not get wrecked investing in crypto.
This is probably investing strategy 101, but nobody wants to mention it. So here it goes.
- The first thing you need to do is make sure that you have got your spending in check.
If you are living pay check to pay check, then you should not be thinking about investing in anything. But especially, cryptocurrencies.
If you are not in a position where you are saving any money. To put it another way, if there is a whole lot of month left at the end of the money. Then please don’t invest in cryptocurrencies.
Tips to get your finances in check:
Write down a budget.
Pay down your debt.
Cut out any big purchases
And start to save yourself an emergency fund.
An emergency fund, if you don’t already know, is a savings account for if you hadn't already guessed emergencies (you see what I did there?). Emergencies are things like fixing a broken-down car, or a vet bill or you lose a job, or you get sick and are unable to work.
You need to have an emergency fund that will last you at least 3 months, should you lose your job. So 3 months salary is a good start on a budget where your weekly expenses are 70% of your weekly income.
2. Patience is key. You need to be prepared to wait a long time.
This is not as exciting as the promise of 100x returns in 2022, but it is more important.
So crypto can go up real quickly, but it also can go down real quickly. And this is not easy to watch and sit through. It can be a bloody emotional roller coaster!!!
You need to make sure you have the ability to be patient.
I say this from my own personal experience. I invested around $5,000 in to a variety of cryptocurrencies at the end of 2017 after seeing some big gains from my first initial investment into Bitcoin. Bitcoin had tripled in value and I thought this crypto investing thing was easy. Eventually that saw my portfolio eventually drop as low as a $1,000 over the following 36 months. I had never experienced a crypto bear market. And I was really frustrated. I thought that my investments would never go back up in value.
I was this close to taking a massive loss.
And I had to wait 3 years to see my portfolio finally get into the green.
Some of the coins never went back to what I paid for them. Steem was an example of one of my loser coins. Which brings me to my third point.
3. Start small and don’t go all in.
This is probably the most valuable advice I can give to someone who is new to crypto. When you get your first taste of the ups and downs of crypto, it is important you start off with a small percentage of your net worth (your total cash and sum of appreciating assets value — minus any debt you have).
I would say no more than 2% of your net worth, is a good place to start.
This will give you a chance to get an understanding of how the market works, without destroying your life. If you manage to figure out a winning investing strategy, then you can bump up your total allocation to the cryptocurrency space.
You need to get used to the swings of cryptocurrency. This will help you to stay calm when under pressure.
You don’t want to freak out on a dip and sell for a loss when you have your life savings invested into crypto. Only to see that crypto bounce back for a 5x, 10x or higher gain.
So there you go. 3 tips for investing in cryptocurrencies.
What is your advice???
Did I miss anything???
Thanks for reading Top Crypto.
You can check out my YouTube channel for more crypto chat.