How To Invest In Crypto
The Five Ws
Who: People looking to invest in crypto
What: How to invest in crypto
When: Now! The sooner, the “more” better
Where: On www.Halfbare.com
It goes without saying that people invest for different reasons. And, unless they are a psychopath, everyone wants to make a profit.
Cryptocurrency is a phenomenon and according to some, is comparable to the internet itself!
Why? Because the largest companies are utilizing crypto and blockchain technology to disrupt markets. If you don’t believe me — read this: Why are Cryptocurrencies trending in the news?
I’m sure you have heard about the incredible rise of cryptocurrencies, particularly Bitcoin, over the last few years. Maybe even yesterday since Bitcoin is on an unprecedented bull run — again.
Investors are making fortunes overnight with Bitcoin and other prominent cryptocurrencies. And you’re wondering, “How can I get into this game?”
Well, you have landed in the right place!
Where Can I Buy A Crypto?
The #1 platform is Coinbase. Coinbase is a cryptocurrency exchange where you can buy and sell cryptocurrencies for fiat and other crypto coins.
Coinbase has a website and a mobile app (both iOS and Android) where you can register and start trading within minutes.
I wrote a step-by-step guide here. Coinbase made investing in crypto easier than ever.
Usually, bank transfers (ACH) take 3–5 business days to clear but Coinbase lets you purchase coins right away, within certain limits, using your bank or credit card without waiting for transfers to clear. The catch is that your cryptocurrencies won’t be available for trading for a few days.
How Much Can I Invest?
Never invest what you cannot afford to lose!
The beauty of cryptocurrency is that you don’t have to buy “whole units” every time you trade.
What does that mean?
Let’s say the current price of Bitcoin is $7,600 but you don’t have that kind of money. Well, you’re in luck! You can buy a portion or a fractional share. Instead of saving up $7,600 to buy one Bitcoin, you can buy $10 worth which is 0.0013 of a Bitcoin.
This removes any barrier of entry and democratizes the crypto trading market, making it accessible to everyone.
If you don’t want to invest any of your own money — here are 5 ways to earn crypto for FREE!
When Is the Best Time to Buy?
The crypto market is extremely volatile! Anyone who says they can predict the market is a liar!
There are two schools of thought on this: (1) short-term (day trade) or (2) long-term (HODL)
Let’s look at both.
1. Day Trade
This is risky and without trading experience can be very difficult. If you’re a beginner to trading or investing, this option is not for you.
Due to the extreme volatility of the coin market (and Bitcoin specifically), it is relatively easy to trade throughout the day, known as day trading. You can buy when prices go down, and sell when it goes back up.
Not really. The volatility makes this difficult and unless you have a basic understanding of charts, you will lose money or crypto.
It’s not a typo, the term was coined by users in the Reddit Bitcoin community and it means “hold.”
Yes, instead of removing a letter like a word “bae” for babe, the community switched a letter around and it stuck.
It was born during fierce debates and comments on the Bitcoin subreddit where people were encouraging each other to hold their coins. This was when Bitcoin was hitting ATH (all-time highs) and users were encouraging each other to hold through the dips.
“Hodl” or long-term is the best strategy. For beginners and advanced traders.
Because of Dollar-Cost Averaging — a strategy that allows an investor to buy the same dollar amount of investment on regular intervals. The purchases occur regardless of the asset’s price.
Which Cryptocurrencies Should I Buy?
Just like stocks, DYOR (do your own research).
Because if someone is promoting a cryptocurrency, either they love the technology (which is awesome), or they bought it at the ATH (all-time high) and are hoping it reaches that high again to offload their holdings. Basically, they are convincing you to buy it so the price goes up and then they can sell.
I have my own preferences for what coins you should invest in and I can explain why I invested in them myself — but I would prefer not to sway your opinion. BUT if you are interested, just send me an email and we can chat!
When I invest in cryptocurrencies, I look at several things:
- What’s the intended purpose of the coin? >> Hint: Read the Whitepaper
- What problem are they solving? >> Hint: Coinbase Learn and Earn
- Would I use this technology? Would others?
- Do they have partners? >> Hint: Are large companies using it?
- How many coins were generated and what is the cap?
- Are they continuing to develop? >> Hint: check their Github Repository
- Who are the Dev Team members?
- What is the social media conversations and buzz around them? What are experts saying?
- What is the historical performance of the coin, if that information is available
At the end of the day, it is a judgment call — a risk you have to be willing to take.
If your spidey senses go off when you do your research — RUN!
Cryptocurrency has taken the internet by storm. Literally!
Large companies like Microsoft, IBM, and Facebook are utilizing cryptocurrencies and blockchain technology to disrupt markets — You can read about all the developments here!
Cryptocurrency is high-risk, high-reward investing.
There are plenty of free tools and information that can be found. The main takeaway is that no one knows for certain what the future holds for cryptocurrency. And only invest what you can lose.
If you want to crypto-nerd out, send me an email and we can chat!