How To Invest In Cryptocurrency

 

How To Invest In Cryptocurrency

We should seriously talk about cryptocurrency because recently I was informed that 55 Bitcoin holders are completely new after they just made their first investment this year, and although there There are numerous opportunities to earn a substantial sum of money.

 Except the truth is there is a lot of bad information out there and when you combine that with a little oversight it's easy to slip away and lose money now don't get the wrong idea, because I don't want to get rid of stories where people turn 17 5.9 million, or we We turn everything into dogecoin which becomes a multi-million dollar windfall, but by talking to and interviewing dozens of people who have earned a huge amount of money using cryptocurrency.

I noticed a recurring theme that almost all of them do it and if you follow a very simple scheme, I have a feeling you will come out profitable.

 So with that being said, here are the six best ways you can build wealth effectively with cryptocurrency, no matter where you started, how much you already know or how much you plan to Invest In Cryptocurrency and to make it more interesting


There's a good chance you're going to lose. 

 Let’s start first when it comes to cryptocurrency with risk, and I will be the first to say that if you are fond of huge stories of Wall Street games that offer life-changing amounts of money it seems that money can happen overnight but you have to be absolutely fine with the strong possibility that you will lose Probably a large sum of money in your quest to find the next big thing you're hoping to pump up and we pray you sell out in time to buy a lamborghini.

 In fact, our recent analysis showed that if you invested an equal amount in the top 200 coins, only five of them had a return above 10,000 percent which means that if you blindly throw your money into different projects you have only a two and a half percent chance To choose the right project with losers severely reducing your returns.

 In fact, statistically speaking, projects that go down tend to go down a lot and in these cases you can expect to see at least a 90-100 drop from your entire investment by chasing after the one who does well.

It's really important to mention that because in every story you hear about someone making millions of dollars, there are likely hundreds of others who lost out on the sale too soon or too late or I don't see anywhere near the types of returns like this so if you're chasing Maximum returns possible, I won't discourage you from trying to make money but just understand that odds are against you and you most likely won't be the next pizza half millionaire.

 But the good news is that there are other strategies that have a very good chance of making good money, and even though it might not be ten thousand per cent we still add a lot.


 The most stable and expected returns came mostly from Bitcoin and Ethereum.

The second issue, the most stable and predictable returns came mostly from Bitcoin and Ethereum, and I'm sure most of us have seen interesting articles how much you would get today if you invested 100 BTC in 2009. If you're curious it's $48 million or how Ethereum rose 35,000 since Its creation, and while there is a lot of optimism about the future of the better two, it's very easy to think and they've really gone pretty big already, I'd make more money investing in something smaller but you know you could be wrong.

 A blog called Market Sentiment has extracted daily trading data across 317 different exchanges in nearly 2,000 different currencies to find the commonalities, the best crypto returns based on historical market capitalization and trading volume dating back to December 2013. surface, it has been found that when comparing the first listing price of an exchange with the latest available trading price,


Only 40 percent of them gained value that was instantly if you blindly bought everything that appears, expect 60 of them to be losers or even at their best, but even though 40 cryptocurrencies don't actually gain any value.

I'm sure you realize the folks are doing a really good job and the average payout across these winners is an astounding 3,048 percent now although that sounds like a ton, and what's even more interesting is how much of that is being pushed by a few values Extremists who have crossed the moon and go to Mars because if you remove one percent of the cryptocurrency from that, your return drops to 641%, and if you remove the top five percent, your return drops down to what you would have invested in the s&p 500.

This means that with 40 that are not actually gaining any value, only 2% of that actually drives your return higher than the stock market's long-term return.

Then the other 98th time you had better just be a boring stock market investor and buy it instead,

 Although what begins to put this into perspective is that throughout the overall cryptocurrency market, various strategies for maximizing returns have been tested over the past decade or so.

The vast majority of earnings year after year are led primarily by Bitcoin and Ethereum.

 costavg.com shows that investing just $50 a week in bitcoin would have yielded a total of 2,180 since 2016, and Ethereum would have fetched you 6,683,

But that doesn't mean these types of returns will last indefinitely, but so far year after year, they tend to be the safest and riskiest adjusted returns in cryptocurrency, so it's best to stick with this study.


 diamond hands

 The third issue after the study that shows the importance of diamond hands, but the practice of buying and keeping should not always be used.

 Unfortunately, you make the excuse of holding on to a losing cryptocurrency for longer than it should with the expectation that if you hold on long enough, it will have to recover because I may not look at you but in the long run the best cryptocurrency has done well, although you may lose in the short term Huge amount of money as an example, this reminds me of reddit user joe4m who put this exact strategy to the test and documented it on his website top10cryptoindexfun.com and legend does he still document his wallet to this day, well, he doesn't post a monthly update there, but if you follow along, it's interesting Really interesting four years ago, he started investing $100 each in the top 10 cryptocurrencies on January 1st every month of the year and by the end of the first year with this experience, his wallet had lost 85 percent of its value at the time, even the mighty bitcoin had Dropped 70 and four of the top 10 cryptocurrencies are no longer on the list by the end of the year but you know what they say when the cryptocurrency drops,

 Blame Congress then buy more so keep his original investment and repeat the process again by buying a hundred dollars each in top 10 coins well after 12 months during the time the value of the cryptocurrency soared 500 s 29 his portfolio of cryptocurrencies increased by 1.74 which drove him to underperform the savings account even though he kept repeating this process year after year and now patience has finally paid off if we now put the four years together bearing everything equally for the whole time we can see we all have now gone up an amount So big that the previous 2018 portfolio went from a loss of 85 percent to a gain of 72 percent that he even mentioned an average return of 514 percent compared to a p500 return of 56 over the same time frame, all of this means that despite the constant volatility and extreme crashes on the Historically, both Bitcoin and Ethereum have always recovered and the market is moving forward, so if you believe in a project and have the means to generally remain patient, the buy and hold approach will be the most profitable even though you may lose r Ponds in the short term, with cryptocurrency invest only what you want to lose, I know this is the most cliched investment advice ever, but it is correct given the uncertainty regulation of volatility and manipulation of a large part of the market.


You should not invest an amount where if you lose it all you will destroy,

 The truth is thinking logically and making rational decisions you can't let your emotions get the best of you or trade as if you were trying to tackle the national debt, the only way to stay completely neutral is to limit your investments to the point that if it goes down, it will suck but you will be perfectly fine, and you won't You have heart palpitations from my experience after talking to hundreds of people if you are ever at a point where you lose sleep unable to focus or panic at the sight of 10 drops this probably means you have invested a lot and it is a good idea to cut your investment to the point where you may You think about it objectively frankly, this amount will be different for everyone,

And you know what if you are comfortable getting 100 all with 3x leverage on chiba enu more power to you but for the vast majority of people your best investment idea will likely start small and grow over time, then invest more than you feel comfortable with, and lose your mind if Nothing has happened now on the positive side of all these studies,

 In fact, if you want to diversify your portfolio, it will not take much to boost your returns, for example, recently Bitcoin is considered an uncorrelated asset, which means that its price and performance are not directly related to how well other investments in stocks and real estate are,

For this reason, it was found that allocating just 5 percent to Bitcoin would have boosted the traditional wallet's cumulative return by 65 since 2014 despite sell-offs along the way.

 So don't think that you have to invest everything in cryptocurrency to get the interest, just invest enough if you go to zero you will still be fine but still enough that if the price goes up you will be able to make some profit, don't invest blindly because Everyone thinks he will eventually reach a dollar and a recipe for disaster,

The truth is that when you read or watch tips online, you have no idea if or how this person is being compensated or if he has a bias that might influence his advice, for example I will be completely honest that I invest six percent of my entire portfolio in bitcoin and Ethereum, and this is something that took me years of research to feel comfortable with and it is up to you to decide if I can talk about this investment objectively or if I am just talking about it because I want my investments to go up now,

I obviously think that nothing I say or do will affect the price of bitcoin and ethereum as I invest my money, but that's not the case for smaller coins which can easily be impacted up or down depending on what someone says, it becomes very easy Falling into an investment echo room where you watch someone say the rocket emoji coin is going to the moon and then it is recommended to use another tool Athor who said the rocket emoji coin is going to the moon, then suddenly it is all that is recommended and it becomes very difficult to hear the opposing viewpoints or anything else that might give you a more comprehensive opinion,

 So in this case don't just listen to one person or one source to do your research by hearing both the good and the bad and everything that falls in between places like youtube twitter and reddit are great resources, but just be aware that each coin will have its own community They think it's the best thing ever since slicing bread so do your best to know the past decides if this is something you want to buy and then prepare to lose everything and six you should take cyber security seriously.

 I won't go into all the ways someone can take control of your account and move your cryptocurrency from one wallet to another with very little recourse, but I will say this stronger password protection and two-factor authentication is a must, no matter where you keep your coins and to protect Maximum, what I would recommend the least safe is to keep your coins in a brokerage or exchange that might include sites like coinbase kucoin binance or anywhere else where you can buy something and then leave it on your account, although good brokers are likely to be You're still vulnerable to attacks, and if you fall victim to a phishing scam, you're betting coinbase has no incentive to help you get it back.

I mention you never know if a brokerage might get shut down or completely block access to your account which is why if you have a large amount of money it is probably a good idea to move it to a private wallet for you to access just in case, but two steps From that will be the so-called hot wallet, this refers to the digital wallet that connects to the Internet, in this way it is much easier to buy and trade,

Just you should think of this as your secure bank account except for cryptocurrency by connecting it to the internet, it is always there in case you need to access it,

But the downside here is that it can definitely be more vulnerable to attacks.


 If you want maximum security, you can look into a so-called cold wallet, this is a way you can store your cryptocurrency offline, so unless someone has access to your physical hardware wallet and they know your secret passphrase Your generally inaccessible people tend to use either a ledger or a trezor and if you have a lot of money and want to store it securely,

 This is probably the best way to do it right now, rest assured that the inconvenience is that if you ever have to want to transfer them, you have to go online and then transfer them to a hot wallet.

 

Never click on links in emails or text messages

But for security, nothing else beats this fourth, you should never click on links in emails or text messages. ess files to your wallets and never reuse the same passwords,

I know this all sounds like common sense but you know saying an ounce of prevention is worth a pound of cure which means it is much easier to prevent something from happening than to fix it once it does just be careful,

Write down your recovery phrase, store it in a safe place, and enable two-factor authentication for an extra layer of security.


I use a combination of everything and I spread your money in many different places,

 It's best to use a combination of everything so that by the way you always have something to fall back on, these are my favorite strategies when it comes to cryptocurrencies that have historically been safe, stable and secure, just remember it's always possible for something like this to work so no The bear market works or lasts longer than expected, so when a lot of new people enter the space, just play it safe, be careful not to invest more than you want to lose, and understand the risks involved in yoloing the next pop coin.



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