Friday, July 1, 2022

How To Get Rich Investing In Cryptocurrency

Investing In Companies With Crypto Interests

You Can Still Get Rich With Cryptocurrency Without Investing A Lot! Here’s why…

Thats how personal finance expert Suze Orman initially did it. She recently told NextAdvisor about how she invested in MicroStrategy, a cloud computing firm that holds billions in Bitcoin, because its CEO was putting all of the companys working capital into Bitcoin. She figured if Bitcoin increased in value, so would the value of Microstrategys stock.

But as anyone who follows Ormans advice knows, she recommends index funds as a much better investment strategy than picking individual stocks.

Rather than buying shares in any single crypto-forward company, its better to maintain a balanced portfolio by identifying companies with crypto interests, and making sure their shares are included in any index or mutual funds you put money into. Not only does that allow you to invest in the companies where you see potential, but it also helps you keep your investments diversified within a broader fund.

If you invest with Vanguard, for example, you can use the sites holding search to find all the Vanguard funds that include a specific company. Just enter the companys ticker symbol and the tool will offer a list of all the Vanguard products that have holdings of its shares. Other investing platforms offer similar ways to search by company within index and mutual funds.

How Can I Buy More Coins

Buying more coins to expand your cryptocurrency portfolio is a smart idea the more you diversify, the better your chance of hitting a coin that goes to the moon. I do however recommend keeping at least 70% of your portfolio in relatively safe coins like Bitcoin, Ethereum, Litecoin and Monero.

Most cryptocurrencies can only be bought on trading exchanges and not on Coinbase and some cryptocurrencies are only available on one or two exchanges.

The majority of cryptocurrencies can only be bought with Ethereum or Bitcoin so you have to buy one of those before you can purchase the smaller coins.

To properly expand your portfolio, you will need to join a trading platform is the largest and most trusted trading platform out there and it lists a wide selection of decent coins.

You will need to first buy your Bitcoin , you will then send your BTC to a cryptocurrency trading exchange.

Once you have your BTC in place on Binance or another cryptocurrency exchange, you can then expand your portfolio and buy other coins.

Note: Binance is the best trading exchange in my opinion.

Dont Invest More Than You Can Afford To Lose

Finally, its important to avoid putting money that you need into speculative assets. If you cant afford to lose it all of it you cant afford to put it into risky assets such as cryptocurrency, or other market-based assets such as stocks or ETFs, for that matter.

Whether its a down payment for a house or an important upcoming purchase, money that you need in the next few years should be kept in safe accounts so that its there when you need it. And if youre looking for an absolutely sure return, your best option is to pay off debt. Youre guaranteed to earn whatever interest rate youre paying on the debt. You cant lose there.

Finally, dont overlook the security of any exchange or broker youre using. You may own the assets legally, but someone still has to secure them, and their security needs to be tight. If they dont think their cryptocurrency is properly secured, some traders choose to invest in a crypto wallet to hold their coins offline so theyre inaccessible to hackers or others.

Recommended Reading: What Does Band Bring To Blockchains

I Am Not A Licsened Investor Investing Can Be Risky You Have The Potential To Lose The Money Just As Easily As You Can Make It All The Information I Have Written Here Is Simply What I Have Done And What I Currently Do It Might Work For Me And May Not Work For You You Only Have Yourself To Blame If You Lose Money In Cryptocurrency Stocks Forex Or Derivatives

AFFILIATE DISCLAIMER!

THE ARTICLE CONTAINS LINKS TO EXTERNAL WEBSITES. I DO NOT OWN THOSE WEBSITES. THESE LINKS ARE CALLED AFFILIATE LINKS. WE MAY BOTH MUTUALLY BENEFIT FROM YOU USING THE LINKS WITHIN MY ARTICLE. IT WOULD BE MUCH APPRECIATED IF YOU USE MY LINKS IF YOU PLAN ON VISITING ANY OF THE WEBSITES LISTED BELOW.

My Recommendations:

1. Do not use trading as a get rich quick scheme. Use proper risk management to grow your portfolio.
2. Make use of tools, technical analysis and/or enlist support to help you make winning trades.
3. Do not be afraid to close trades early to secure profits.
4. Trade on the 1 hour chart or higher.
5. Do not short in a bulls market, and likewise, do not long in a bears market.

I will start by addressing:

1 A. The Trade Mentality
1 B. Winning a Trade
1 C. Losing a Trade
1 A. The Trade Mentality

Consider this section very carefully:

Trading may not be for everyone. It takes a certain mentality and patience. Your margin is certainly a factor here, but you typically cannot expect to win that much from a trade unless youre pouring thousands into your trade. If your position size is as large as in the thousands, then you really should consider making sure that you use proper risk management. A full-time job takes about 8 hours a day. Perhaps winning a trade could take just as long if not longer. With that said, think about whether or no if trading is right for you.

  • How should you start trading?
  • When should you stop trading?

A Safer Way To Invest

Can You Get Rich By Investing In Cryptocurrency ...

The good news is that it’s still possible to get rich with the stock market — and even become a millionaire — without betting on high-risk, short-term investments.

Although it may not be as exciting, taking a slow-but-steady approach is a far more effective way to build wealth in the stock market. This strategy involves buying strong stocks from healthy companies, and then holding those investments for as long as possible.

Fundamentally sound companies are likely to grow consistently over time, and their stock prices will gradually increase. While these stocks may not experience explosive growth, you’re also less likely to lose money with this type of investment.

While short-term investments like Shiba Inu may be tempting, they’re also incredibly risky. By maintaining a long-term outlook and choosing the right investments, though, you can gradually build a robust portfolio worth hundreds of thousands of dollars or more.

10 stocks we like better than Shiba Inu

When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Shiba Inu wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

You May Like: Why Is Blockchain So Important

Do You Need A Paper Wallet

The answer to this question will largely depend on your circumstances. If you plan to spend the summer day cryptocurrency trading a few coins, perhaps you dont. Alternatively, if youre in for the long haul, and dont intend to touch any portion of your stash, then a paper wallet is the most secure option available to you. The paper wallets that you can use are as follows:

What Type Of Profit Potential Exists In Bitcoin And Other Cryptocurrencies

Here is a visual representation of what Bitcoin could buy you over the past few years and what it might be able to buy you in the year 2020. The Lamborghini was not placed there for shock value or a joke. The price of Bitcoin was around $5 in 2012 and is $1,200 today. It has gone up 240X in four years, so if it were to go up another 240X over the next four years, you certainly could purchase a Lamborghini Huracan or just about any other car on the market with your initial $1,000 investment.

Past performance is no guarantee of future results. Your starting investment will need to be closer to $3,000 if you want the Lamborghini Aventador.

But seriously, Bitcoin is up over 50% from the low in January to $1,200 today. It was selling for just $400 at this time last year, so investors have seen a 3X return on their money in just 12 months. I first wrote a bullish case on Bitcoin for subscribers back in 2013, when it was selling for around $100 and not yet garnering major headlines as it does today. Bitcoin now has a market capitalization of nearly $20 billion.

While most of the attention is on Bitcoin, 2017 is probably the year of the altcoin, which just stands for alternative digital currencies/coins. There are so many now that it is hard to keep track of them all, but they are ranked by market capitalization, here. I have listed the Top 12 cryptocurencies below.

Also Check: Where To Buy Crypto Wallet

Is There A Good Time To Buy

There is no general rule when to buy cryptocurrencies. Usually it is not a good idea to buy in at the peak of a bubble, and usually, it is also not a good idea to buy it when prices are crashing. Never catch a falling knife, as the traders wisdom says. The best time might be when the price is stable at a relatively low level.

The art of cryptocurrency trading is a vast topic in and of itself, and determining precisely when a crypto is in a bubble and when it has reached a local bottom after falling is not an exact science. What is easy to say in retrospect is a hard question to answer in the present. Sometimes a coin starts to rise, and after it passes a key line of historical resistance, and many believe it to be at the peak of a bubble, the real rally just begins.

For example, many people did not buy Bitcoin at $1,000 or Ether at $100, because it seemed to be overpriced. But years later these prices now appear to be an incredible bargain that will never again appear to the market.

This is definitely not financial advice, but some general guidelines to help you decide when to make an investment include:

Do I Need To Do Crypto Taxes

How To: Get rich (slowly) with Cryptocurrency Trading and Investing

Disclaimer: We are no tax bureau nor tax consultants. If you have issues with taxes, and if large sums are at stake, you better ask your local tax consultant.

Right now there are only a few tax consultants who know how to deal with cryptocurrencies. But it can be safely assumed that the number is growing quickly and that cryptocurrencies will soon be a standard issue for tax experts like securities, shares, ETFs and real estates are.

All we can provide here is an overview of the typical issues with cryptocurrencies and taxes.

Recommended Reading: How To Convert Cryptocurrency Into Cash

Closing Thoughts About How To Invest In Cryptocurrency

The heated discussions about cryptocurrency still go on throughout the day, but to a much lesser extent.

Im not going to lie, writing this article about how to invest in cryptocurrency helped me:

  • Better understand cryptocurrency
  • Improved my relationship with my husband

In fact, after I finished writing this article about investing in cryptocurrency, my husband asked me for about the 100th time whether we could open a Coinbase Account and I finally said OK.

We opened our Coinbase Account and actually got a $5 bonus to help us with our investing in cryptocurrency.

Our first cryptocurrency pick?

Should You Buy Bitcoin

In general, many financial experts support their clients desire to buy cryptocurrency, but they dont recommend it unless clients express interest. The biggest concern for us is if someone wants to invest in crypto and the investment they choose doesnt do well, and then all of a sudden they cant send their kids to college, says Ian Harvey, a certified financial planner in New York City. Then it wasnt worth the risk.

The speculative nature of cryptocurrency leads some planners to recommend it for clients side investments. Some call it a Vegas account, says Scott Hammel, a CFP in Dallas. Lets keep this away from our real long-term perspective, make sure it doesnt become too large a portion of your portfolio.

In a very real sense, Bitcoin is like a single stock, and advisors wouldnt recommend putting a sizable part of your portfolio into any one company. At most, planners suggest putting no more than 1% to 10% into Bitcoin if youre passionate about it. If it was one stock, you would never allocate any significant portion of your portfolio to it, Hammel says.

Recommended Reading: How To Buy Ibm Blockchain

How To Buy Cryptocurrency On A Decentralized Exchange

  • First create an account on a centralized exchange
  • Create a hot wallet by adding as an extension to your browser
  • Be sure to physically write down your secret passphrase on paper and keep it safe!
  • Transfer crypto from the wallet on your centralized exchange to your hot wallet
  • Evaluate and choose a blockchain ecosystem you want to use
  • Find a decentralized exchange that has the liquidity and assets you want on the ecosystem you want
  • Buy crypto!
  • The question, what type of exchange to use depends on a number of factors. What is your risk tolerance? What are your investment goals and timelines? What is your investment or trading strategy? How important is security, privacy, or decentralization to you?

    There are a lot of variables and trade-offs to consider, and no one-size fits all answer. One thing is for certain: crypto investing can be risky so do your own research, and do not make investments without strong conviction.

    If you want to learn more about how to safely invest in CeFi and DeFi exchanges, our Crypto Investment School course has a comprehensive curriculum taught by crypto investors whove got real-world experience.

    A $500 Investment In Ethereum

    4 Reasons to Embrace Cryptocurrency

    In 2011, Russian-Canadian programmer Vitalik Buterin got involved in the Bitcoin community, first as a blogger, and later as the co-founder of Bitcoin Magazine. As Buterin learned more about blockchain technology, he came to see Bitcoin as a relatively limited platform. In fact, he has compared it to a calculator, meaning it does one thing very well , but it only does one thing.

    That led to an epiphany. Buterin envisioned a better blockchain, one more similar to a smartphone, meaning it would integrate Bitcoin’s calculator-like utility, but it would also expand on it. After his ideas were rejected by several existing projects, he decided to create his own cryptocurrency. And in July 2015, Buterin and five co-developers launched Ethereum, the first programmable blockchain.

    On Oct. 20, 2015, Ethereum bottomed out at a price of $0.42 per coin. Since then, its value has surged over 1,000,000%. That means a $500 investment made at the low point would be worth over $5 million today.

    Read Also: Should I Buy Chainlink Crypto

    How To Get Rich Investing In Bitcoin And Emerging Cryptocurrencies

    While I remain bullish on precious metals and believe that prices are headed much higher, it has been my cryptocurrency investments that have generated the most excitement lately.

    Precious metals and cryptocurrencies are complementary assets that share many philosophical/political similarities, so I think investors should consider owning both. Lets put the gold vs. bitcoin arguments to rest. I have gold, silver bitcoin and a few of the more promising cryptocurrencies in my portfolio and the returns have been outstanding.

    How Do You Store Your Cryptocurrency

    Hang with us, were about to get pretty techy here. You store your cryptocurrency in something called a digital walletusually in an app or through the vendor where you purchase your coins. Your wallet gives you a private keya unique code that you enter in order to digitally sign off on purchases. Its mathematical proof that the exchange was legit.

    With us so far? Okay, good. Because were about to get into the tech weeds even more.

    Cryptocurrencies use something called blockchain technology. A blockchain is like a really long receipt that keeps growing with each exchange of crypto. Its a public record of all of the transactions that have ever happened in a given cryptocurrency. Yes, it sounds like its straight out of The Matrix. Just think of it like a ledger that shows the history of that piece of currency.

    Recommended Reading: What Are Blockchains Used For

    Chances Of Getting Millions Over Cryptocurrency Investment

    Undeniably, there are people all over the world that gets rich with cryptocurrency investments. And since theyre pretty much like bonds and stocks but with certain restrictions, these digital currencies are trading at huge discounts and comes with an excellent opportunity for investors to grow their wealth fast and quick. Furthermore, given that no brokers are charging high fees, nor any other middlemen to deal with, it also means that there are no barriers upon market entry.

    To successfully invest in cryptocurrency and become wealthy, having proficient background knowledge on various businesses, the supply and demand curve, and the general economic trading at any moment can play a significant part in your way to become a millionaire. Theres not really a concrete answer as to how much to invest in cryptocurrency to become a millionaire. As a rule of thumb, huge investments that are carefully planned will give you a fair chance of getting millions of returns from your investment.

    Appeal To Younger More Diverse Investors

    Top secret: How to get 1000X richer investing in cryptocurrency 2021

    Another benefit of cryptocurrency is that it has wider appeal to investors who have traditionally had trouble building long-term wealth, including people of color, women and those with lower incomes.

    Women make up more than 40% of cryptocurrency traders as opposed to 38% of stock traders, the NORC survey found.

    The people of color and those with lower incomes surveyed by NORC were also more likely to invest in cryptocurrency than stocks. People of color make up 44% of crypto traders compared to 35% that hold stocks. And, those making less than $60,000 annually make up 35% of cryptocurrency traders, while only 27% of those investing in stocks had similar annual incomes.

    In addition, the average age of crypto traders was 38, compared to 47 for those holding stocks.

    “I think there’s a lot of potentially perceived barriers to traditional retail stock investing that have made some of these historically underrepresented groups less likely to invest,” said Angela Fontes, vice president in the economics, justice and society department at NORC at the University of Chicago.

    On the flip side, the growing accessibility of cryptocurrency has appealed to those same groups, she said.

    Read Also: How To Buy Into Cryptocurrency

    Popular news
    Related news