Invest in Crypto: Bitcoin Millionaires Share Their Secrets for 2023! Checkout NOW!
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So, you want invest in crypto. Maybe you have some money saved up, it’s probably not enough to buy a Lambo. But you realize you should invest this in something, hoping one day you can sit in my garage with a Lambo.
Maybe you’ve heard on the news about Bitcoin or Ethereum and about how if you had invested 10 years ago in Bitcoin, you’d be a millionaire or something like that. But if you’re new to investing, this whole crypto thing can seem really complicated. Like, how do you even buy crypto? What even is crypto? Which crypto should I buy? How do I make the most money?
If you try to look into this, you get thousands of different cryptocurrencies thrown around and different terminologies like Defi, altcoins, metaverse, or blockchain that can really confuse you. And there’s also the fear that we all have – what if I lose all my money because Bitcoin goes down? After all, investing is risky.
That’s why you’ve come to the right place, because this is the ultimate beginner’s guide on how to invest in crypto in 2023. It is the article I wish I read on the internet two years ago when I first started my crypto investing journey. We’re going to cover this by thinking about how to invest in crypto in 10 distinct steps.
What Happens To My Money In Cash After A Long Time?
So, one question you may arise in your mind. What happen if I put my cash under the bed and leave it for a long time? According to economics, due to inflation, the value of money decrease by 2-3% every year.
That means every year, stuff gets two percent more expensive than it was in the previous year. This is the reason you hear things like how right now companies like luxury brands are increasing their prices. And recently because of COVID inflation is even worse than we’ve seen in the US, for example, where inflation rates were as high as 7.5 percent.
So, let’s say you had a thousand dollars saved up right now, and you just put it under your bed and leave it for the next 10 years. After 10 years, because of the inflation value of your $1,000 will decrease. Even if you deposit it in a bank or savings account at a 0.5% interest, the inflation will persist. So now if I ask you, can you prevent the loss of money value from inflation? The answer is no. But we can recover the loss by making more money.
How to I Invest in Crypto to Make Money?
So, now let’s talk about how can you make more money? One method to increase our income is through investing. Investing can either generate income or serve as a valuable asset, such as houses, stocks, or cryptocurrency. That Bitcoin’s price went up significantly over the past 10 years means it is an investment. And that you can convert Bitcoin into money or cash so easily means that it’s a liquid asset. The advantage to invest in crypto over real estate is the quick conversion to cash without a long selling process.
One of the biggest advantages to invest in crypto is that it is very easy to invest. And one most important thing is that it does not require investing thousands of dollars. You can just start with $100.
What are cryptocurrencies?
Cryptocurrency is best described as a peer-to-peer transaction. When you send money to your friend, you use platforms like PayPal, Venmo, or Cash App, which involve bank transfers. In this case PayPal or the bank acts as the intermediary to facilitate it.
So, therefore, what this really means is that it’s centralized, and they have the power and control over what happens with your money. And that’s also one reason you have such high fees to pay. In cryptocurrency, there’s no such thing as the middleman, the only middleman we call him Mr. Blockchain.
And blockchain is an algorithm and a piece of code that ensures that when I’m sending you Bitcoin, there are no different externalities. And something really important to know is that this blockchain is inherently not hackable, and it’s not owned by one person who has all this money and all this power rather, it’s collectively owned by everyone, including you when you’re buying or selling Bitcoin. So, that’s the basic fundamental understanding that you need to know about cryptocurrency that makes it very attractive as an investment.
How Do I Invest in Crypto?
Now you might think, how can I purchase cryptocurrency? You need two things now. To store your cryptocurrency, you need a wallet. And if you think you will buy and sell this currency, then you need an exchange. Now it is good news for us that in 2023, major crypto exchanges like Binance or Coinbase have wallets for storing crypto.
In my experience, these exchanges are typically easy to use and configure. As an example, I can go onto the Binance app right now and purchase Bitcoin worth one thousand dollars without any trouble, and it usually only takes a few seconds.
Now you want to secure your account and do things like enable two-factor authentication. And if you want to be extra safe and bougie, you can buy things like a cold physical wallet, USB. To buy Bitcoin is very simple. For that you need to sign up for an account. And then you should deposit some money in it.
How do I decide which crypto to buy?
Now, perhaps the harder question is deciding which crypto to buy? Now, there are lots of different cryptocurrencies on the internet. So, it is very difficult to choose which one to buy. But traditionally, most conservative investors invest in either Bitcoin or Ethereum. And I first started by investing in Bitcoin and Ethereum.
Why? Because they are historically the two most popular cryptocurrencies with the most amount of money already invested in. And also, they have tremendous support and a powerful community. Because when you think to invest in crypto, Bitcoin is often the first buzzword that comes to your mind. But there are other cryptocurrencies known as altcoins, which are not Bitcoin.
So, for that you can use CoinMarketCap.com. Tt’s a place that I use almost every day to look at where the markets are at. It’s also a great place to discover different cryptocurrencies and different altcoins. Of course, there are other websites like CoinGecko.com, Binance, CoinDesk, or Coinbase you could use.
When you scroll down, you’ll typically find a section labelled “coin’s market cap” that indicates the invested amount in the project. The lower the market cap usually means that the risk and potential reward involved is going to be much greater.
If you’re new to invest in crypto, it’s a big mistake to only look at the cryptocurrency’s price. Suppose you are new to invest in crypto and have no prior knowledge. In that case, a $30,000 Bitcoin would seem much more expensive than an 80 cent Cardano. But It’s important to focus on the charts and market cap to invest in crypto. For this purpose, CoinMarketCap.com comes in handy. If this is new to you, I suggest giving it a try.
Is it risky to invest in crypto? (My Profit Strategy)
So, the next question that you’re probably thinking about then isn’t investing in cryptocurrency risky? Obviously, the value of Bitcoin is volatile. There will always be risks. If you want to gain from your investment or asset, you must take the risk. This is the point where strategy plays a crucial role. And I’m excited to share my two key strategies I used to balance the risk of crypto investing.
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Dollar Cost Averaging
The first strategy is called dollar cost averaging, where what you’re doing is buying cryptocurrency in small amounts every week, no matter what the price is, high or low. And the purpose of doing this is to reduce the effects of volatility. And this is especially beneficial.
Because even for like the pros who claim that they know everything about the markets, it’s incredibly hard to time the markets correctly. And that is exactly why dollar cost averaging becomes very much valuable, and it’s something I’ve been doing consistently over the past
year. I put in at least $100 every week into Bitcoin or Ethereum. Of course, you can do $20 as a start, $10, depending on how much money you have at the start.
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Take Profits
Now, the second strategy or thing that you really need to know is that it’s important to take profits. This is something I’ve had to learn the hard way over the past two years because when the markets are green and when Bitcoin is up, people can get really excited but really greedy as well. And that’s why I’ve learned to not emotional trade and try to take profits as best as I can. And the best way to explain this is through the fear and greed index. It is a daily evaluation of the markets that shows how people are feeling about the prices right now.
The best time to buy crypto is when there’s fear and to sell when there’s greed. So, that’s how you can maximize your profits.
Should I Invest in Crypto for Short-Term or Long-Term?
Are you interested in buying and hold cryptocurrency? Then you can do it either for a short or a long term. Personally, I do a little of both. If you invest long term, the benefits are that you can save a lot on trading fees and time. It’s less emotional trading, and you could obviously make a lot of money without constantly watching what’s happening in the markets. But Cryptocurrency markets move quickly. So, it is difficult to predict the future, which could lead to significant financial losses.
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The Buy And Hold Strategy
But the most common long-term strategy is simply the buy and hold strategy. This is the strategy most investors, including myself, use. Here you usually try to like stock up on all these crypto dips when the market crashes, and then you just play the waiting game.
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Short-Term Strategies
Now, in terms of short-term strategies, to name a couple, there’s scalping, day trading, swing trading, etc. But the main idea behind short-term strategies is that you need to stay informed about the markets and the value of crypto at any moment because you’re more actively involved. My recommendation is to choose a strategy you’re committed to and create an exit plan for withdrawing profits.
When should I invest in crypto?
Now, with those key strategies, when should you get started investing? In my firm belief, it’s always best to get started investing as soon as possible. You’ve probably heard the saying, the best time to invest might be 10 years ago, but the second-best time to start is today. What’s valuable from investing as early as possible is that you can gain the experience, and you can grow your portfolio with more time and compound.
And even if you’re under the age of 18, like me when I first started, I didn’t use this as a limitation to invest. There are tons of ways to invest in crypto to get started, and if you want to keep it simple under 18, then you can just simply convince your sister or parents to use their name. So, yes start as soon as you can.
How much money do I need to start investing in crypto?
How much money do I need to started? Now, the answer to this question is pretty simple. Start with however much money you can. If you’re 14 and you have, like, $200 saved up, start with $100 perhaps and see where that goes. Personally, when I invested my first ever $500 into Bitcoin two years ago, I used money that I had made off side hustles and money I saved up as a kid. And most of these crypto apps like Binance or Coinbase, you can start with as little as five or even ten dollars, and you can research this. It also highly depends on what country you guys live in, but you want to invest soon.
And so, me, for example, I started investing quite early, but as I’ve gained more experience investing. I get to better understand how money moves and how to keep growing my investments, especially the research part of things. You guys are going to realize that the time you put in to research and figure out how to do these investments is probably the most valuable thing that you can get.
How do I start investing in cryptocurrency?
So, finally point number ten: I want to start; I got a hundred dollars; I want to put in crypto. How do I actually give proper guidance? The answer is you want to find a crypto trading guidance. I have given some links above in this article, for your free crypto training. Most people are going to use Binance or Coinbase, but there are a ton of other options depending on where you live. Literally, all you need to do is Google “best crypto exchange USA” or “best crypto exchange UK,” and you’ll find something. You’ll read some reviews, and then you can start.
The thing that you’re looking for is a platform where you can invest safely and easily. Then, once you’ve made your account and verified your identity, depending on the rules and regulations, you can put in money here and there and start your crypto investing journey.
Now, I’ve had a lot of friends who started investing, and what I realized is that for the first few weeks of investing, they compulsively check their phones very often and look at what the markets are doing. But then, quickly, you realize that what happens in the hour or every minute of crypto prices is really less important than what happens in the long term.
Because if you get too invested in looking at the prices today or you keep checking, that is where you can do things like panic sell. Because the markets are done, and there’s a lot to say about crypto investing.
Conclusion
Hopefully, this was a reasonably concise article on how to invest in crypto. I hope this article was helpful. If you got any value out of it, don’t forget to visit our website and be part of the such family. You can also follow us on social media @quillfind. Our community is growing. I really appreciate the support from every single one of you. As always, let’s make this money, see rich. Thanks a lot for reading this compete article.