How to get into Cryptocurrencies without going crazy
Cryptocurrencies like Bitcoin, Ethereum and Litecoin are exploding in value right now! In the past month, Bitcoin went from $6,100 to now $11,175, an 83% gain! Ethereum is up 65%, and Litecoin is up 81%.
Investors are eager to jump in and buy some Cryptocurrencies. This has helped Coinbase soar up the top free app charts on the App Store, it is currently the 22nd most popular app:
Before jumping into the frenzy there are a few things you should keep in mind.
Prices will drop…. Eventually
Long-term followers of this market know the price of Cryptocurrencies such as Bitcoin fluctuates all the time. Due to the current excitement around the space, it’s possible that drop won’t happen right away. It could be days, weeks, or months from now but nobody can tell you with certainty when that will happen.
Prices will bounce back after dropping
The Cryptocurrency space has lots of uncertainty which leads to tremendous volatility. A few weeks ago on November 12th, the price dropped to a low of $5,519 after hitting an all-time high of $7,776, over a 40% drop. Many investors worried that Bitcoin Cash would become the new Bitcoin and sold in a panic.
If you are not reactionary and let the fluctuations happen, good things are ahead. The blockchain technology is revolutionary. Like the early days of the Internet companies are only starting to learn about its utility and put it to use. There will be many drops and rises along that time. If you can stay on for the ride good times are ahead in 2018 and beyond.
Regarding Altcoins
Bitcoin and Ethereum are the gateways to a vibrant Cryptocurrency space. That space now has over 1,000 different coins with more entering the market daily. These coins are exciting and some of them will very likely end up being worth far more than they are today. Though it is much riskier to start with these.
My advice is to start with Bitcoin and Ethereum to get a feel for the market. If you want some Altcoins still, later on, do some research into several coins.
Put 10–20% of your Cryptocurrency portfolio in some of these projects. Try to spread that between several Altcoins instead of focusing on one to limit your risk.
Where to get started
I recommend using Coinbase, it is free to sign up and they make it very simple to get started. You will have to verify your identity and your bank account. Once you do you can start buying Cryptocurrencies right away.
It will take 5–10 days after buying a Cryptocurrency from Coinbase for it to actually appear in your account. The price that you bought it at gets locked in at the time of purchase.
Summary
- Don’t invest more than you’re willing to lose
- Start with Bitcoin, Ethereum, and Litecoin.
- Use Coinbase to get started
- Ignore short-term market fluctuations, focus on long-term goals
- If you find Altcoins you like research them. Keep these to 10–20% of your portfolio
These are exciting times in the Cryptocurrency space! People are fascinated with Cryptocurrencies and everyday investors are now jumping in. The blockchain technology is still in its infancy though and much of the innovation in the space is ahead of us.
