Bitcoin, Ethereum, Ripple, Cryptocurrencies. It’s on everybody’s news feeds these days.
Investors, their friends, and their pets are getting into this latest fad. Some people think that it’s going to be a bubble, while others think it’s an opportunity. If you’re just getting started, it can get very confusing.
What about you? Are you prepared? Have you read enough whitepapers? News? Roadmaps? Don’t even know what that is? It would be nice to have a few pointers to take note of before diving into the world of cryptocurrencies.
Just your luck, we’ve got you covered! Here are a few things you should know:
First, you don’t need much to get into Bitcoin.
There are plenty of ways to earn money given enough capital. Some include money market funds, stock portfolios and doing Forex Trading. Unlike other investment drives however, when it comes to cryptocurrency, you don’t need so much capital to dive into it! The entry point to participate is very low (though it is on the rise). This is because you can invest and own a (very small) fraction of a whole coin!
On one hand, trading fiat currencies (aka. Paper money like the Dollar or Pound) may need more than just a few notes in your pocket. Opening a trading account may take a while, and most of the time you need proper identification to even be accepted. It takes time.
As a comparison, Coinbase, a cryptocurrency exchange company allows a low buy-in point for anyone: a minimum of £2 equivalent in crypto! This can also be in USD as well. Did I mention entry point is really low?
That doesn’t take much: you can own a small fraction of Bitcoin from the spare change in your pocket. If you misplace this spare change, it wouldn’t really affect your day-to-day life would it?
So, you could always start small. By that I mean very, very small. Some people think $10 is enough for you to be part of this. Some people say $50 or $100.
In any case, compared to other investment schemes like stock markets, ETFs and market money funds, they normally have a higher buy-in. With this, it’s easier. Great, isn’t it?
You don’t have to fully understand the tech.
Some people believe that they will never know enough about Bitcoin before they would consider buying it. Most believe that only the most savvy of techies who know the nuts and bolts of blockchain tech can participate. If you’re looking to make a profit or benefit however, you don’t have to know all of it.
We can never fully predict the markets with 100% accuracy, and the cryptocurrency space is no different.
So, don’t be afraid that you’re being left behind on the trends – more and more people are getting involved in Bitcoin and other coins, so its interest globally is on the rise it’s still bullish (translated: on the rise) so you can reap the benefits later on!
Some of the famous investors have noted price estimates of up to 500,000 or more. We’re still in the USD 10k range: is that low or high? We don’t know. However, given that more and more people are buying into Bitcoin, the prices are sure to change!
The faster you decide, the greater the advantage.
2018 is a promising year for these digital coins. As the public gains an interest in it, so does the chance of a rising market price. With hundreds of ICOs emerging, regulations being placed, and crypto drama between key players, these are exciting times for the budding Bitcoin investor. The faster that you dive into this, the greater the chance of you reaping the benefits!
You don’t have to know so much, which is fine. If it scares you, sticking with the main coins is recommended. Main coins in this case, meaning the most popular coins up to date. If you take a look at the top 10 cryptocurrencies for example, the heavy hitters like Bitcoin, Ethereum and Litecoin are up there. Ripple is on the rise too!
Having a little bit in each would minimize your risks. Understand that these coins will work without you thinking about them whether you like it or not. If that is attractive to you, you should consider deciding which coin to invest in soon.
Figure out what kind of Investor are you first.
By injecting capital in cryptocurrencies, your biggest reason for doing this would be to gain value out of the endeavour. Once you start owning any cryptocurrency, you are essentially an investor. But, what kind of investor are you?
Here are some questions that can help you figure out.
- Do you like to take risks?
- Do you like to support the latest in tech?
- Do you like to take advantage of the different changes in market price?
- Do you have the patience to wait for price changes?
- Do you know anything about dollar cost averaging?
Consider holding for the long-term.
When you start thinking about long term implications, you won’t have to worry about the different rises, dips or fluctuations that happens in the market. Maybe you don’t even have time for that. Maybe you’d rather spend that time with family and friends, instead of looking at market prices and stock charts. That’s alright!
Maybe long term investing is the way for you. When you’re considering long term investing methods, you only need to think about it once and decide. And from there just hold! #HODL
You don’t want to have your heart broken by volatility all the time. It will hurt you in the end, so parking cash in there also works.
Consider day trading/swing trading.
Let’s say you don’t have to patience to wait for substantial profit. You’d rather get a little profit here and there from price changes. Then trading my be an option for you, although you do have to dedicate more of your time to learning more about cryptocurrencies and Bitcoin etc.
Sure, you need to dedicate more time to consider trading an option, but aren’t all uses of our time investments?
What’s good about this is that you can test out knowledge gained from reading all these articles, or from hearing the latest gossip from influencers on Twitter. The catch is, though you might get more profit, it’s higher risk. Sure, all the losses give us lessons, but really we don’t like losses. we’d rather keep our money.
The sooner that you start learning about your comfort zone and deciding the amount of money that you’re willing to invest (are willing to lose), the sooner that you can reap the benefits of diving into cryptocurrency. So start learning!
There are many different sources online, whether it be through Currency Insider, through tweets from influencers or various apps.
The world is your oyster for learning about Bitcoin, you just need to take the first step.