Investing In Cryptocurrency For Beginners

This is your beginner's guide to investing in cryptocurrency.

In this blog, I break down how cryptocurrencies work. I share with you some of the best exchanges for buying, holding, and selling cryptocurrency.

I also talk about some of the most popular cryptocurrency coins that you can buy and invest in over the long term.

If you want my proven strategies for making money with cryptocurrency, keep reading!

Watch the video below:

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Investing in cryptocurrency can be risky. 

Hence why you must have the right mindset before you start investing in it. Cryptocurrency is a new asset class, which means that there is a lot of volatility. It will go up and down.

There are a lot of people who have made a lot of money from the growth and appreciation of cryptocurrency. At the same time, there are also a lot of people who have lost a lot of money from investing in cryptocurrency.

At the moment, we are seeing a huge cryptocurrency boom. Some investors are speculating that Bitcoin could hit $100,000 per coin by the end of 2021. I think that's going to happen.

I've been investing in cryptocurrencies since 2017. I've made a lot of money from it. The more that I learn about crypto, the more that I love it, and the more that I want to hold more of it.

However, I want to mention that I am not a financial advisor. I am not here to give you investment advice. You have to do your research and be responsible for your own investment decisions. 

Why I Love Cryptocurrency

I believe that cryptocurrency is the future. It's already a huge part of our lives. It reminds me of the introduction of the Internet in the '90s. At the time, there were a lot of people who were reluctant to embrace big Internet companies.

Nobody knew how to value these companies. Eventually, in 2000 the dot-com bubble burst. Since then, the Internet has changed how we live our lives. If I could go back to the early 2000s, I would invest in companies like Google, Microsoft, Apple, and Amazon. I'm sure that most people would agree with me.

A lot of people believe that cryptocurrency is the greatest invention since the advent of the Internet. Back in 2017, cryptocurrency went mainstream. However, it was followed by a crash. For a few years, nobody was talking about cryptocurrency until it exploded again in 2021.

Is Cryptocurrency The Future of Money? 

Today, a lot of institutional investors are pouring money into cryptocurrency. Also, we've seen big companies, like Tesla, buy and hold billions of dollars worth of Bitcoin. We've also seen countries, like El Salvador, adopt Bitcoin as one of their national currencies.

Everyone is in agreement that cryptocurrency is here to stay. There is enough demand and interest for it that it won't go away. That being said, there is still uncertainty in terms of how crypto is regulated in certain countries.

I believe that everybody should have some exposure to cryptocurrency. In fact, I don't see any logical argument why you wouldn't. Keep in mind that there have been a lot of people who have been skeptical of innovations since the beginning of history.

Guess what? A lot of them were proven wrong. I'm not saying that you should invest all of your money into cryptocurrency. Rather, I'm saying holding some crypto has its place in every diversified investment portfolio.

At this stage, nobody can deny that cryptocurrency is not a valuable asset class. It has trillions of dollars invested into it and has outperformed every other asset class in existence.

Why Your Investing Mindset Matters

If you get too emotionally invested in the volatility of the market, you'll panic and make bad investment decisions. You must understand that cryptocurrency goes through seasons. You only lose money if you decide to sell. This goes for any investment that you make.

However, when you adopt a long-term mindset to investing in cryptocurrency you won't be phased by the fluctuations. When there's a dip in the market, you'll get excited. This is a great opportunity to buy more at a cheaper price.

Warren Buffett once said that it is smart for investors to be “fearful when others are greedy, and greedy when others are fearful.”

A common acronym in the crypto investing world is known as “HODL”, which stands for Hold On For Dear Life. This means that you should buy and hold some cryptocurrency for at least one year or more.

I plan on holding cryptocurrency for 5, 10, or even 20 years. I'm not concerned with what is happening in the short term and neither should you.

Also, it's important to only invest what you can afford to lose. The volatility of the market means crypto could crash one day. If you only invest what you can afford to lose you won't suffer a life-changing loss. The same is true with any investment.

I believe in diversification instead of investing all of your money into one asset class. The amount of money that you decide to invest in cryptocurrency will be based on your threshold for risk.

How To Get Started Investing In Cryptocurrency 

The most popular cryptocurrency is Bitcoin. It has over 1 trillion dollars of market cap. Etherium is the second most valuable cryptocurrency. If you're a beginner, these are the two coins that you want to start investing in and holding, long-term.

To get started buying Bitcoin and Ehterium you need an exchange. This is similar to an online bank account. It allows you to transfer your money, based on your currency, from your bank account to your cryptocurrency of choice.

There are many exchanges available. However, one of the most popular ones for beginners is Coinbase. Because Coinbase is a publically traded company, it is more regulated, which makes it safer.

Coinbase has a promotion happening right now where they will give you $12 in free Bitcoin when you buy or sell $125 or more in cryptocurrency. Take advantage of it!

Some other exchanges that I like are Nexo, Binance, Kraken, KuCoin, and Crypto.com. For security purposes, I don't like to hold all of my cryptocurrency in one exchange.

A great measure for protecting your cryptocurrency involves using two-factor authentication. You also want to make sure that you've got a great password that has numbers and characters in it that nobody can guess. If you take the necessary precautions you never have to worry about someone stealing your cryptocurrency.

When Is The Best Time To Invest In Cryptocurrency? 

You don't want to wait too long to invest in cryptocurrency because you may miss out on all the growth that you could have. We don't know when cryptocurrency will crash, if at all! However, at the same time, you don't want to put all of your money into cryptocurrency today. The solution to this is called dollar-cost averaging.

Instead of investing in a particular asset one time, with dollar-cost averaging you divide up the amount of money you’d like to invest and buy small quantities of the asset over time at regular intervals. This is what I've done with my cryptocurrency. As a result, I've been able to make a lot of money.

When Is The Best Time To Sell Cryptocurrency? 

A lot of people wait and hold their cryptocurrency until it becomes worth a lot more than what they originally invested in. In effect, they sell what their original investment was. If they lose that money, it's not a big concern because they already got their investment out.

This is how to invest in cryptocurrency for beginners.

There's a lot to learn about the world of cryptocurrency. I encourage you to do your research so that you understand how it works and how you can invest in it.

I hope you're able to benefit from my experience and what I've learned in the cryptocurrency space. The benefits and potential returns that you can receive from investing in cryptocurrency far outweigh the risk.

Here's to your investing success!

Do you want to know how I'm making passive income every day with Crypto Bots? CLICK HERE to learn my secrets!