My Advice on Investing in Crypto

[stingraydiver]

Investing in cryptocurrency is a mechanism for building wealth, but it is not only for the wealthy. This is why our community is growing.  Anyone can get started investing in crypto, and various options (BTC, ALT Coins, ICO’s) make it easy to begin with small amounts of fiat and add to a build a portfolio. What differentiates investing in crypto from gambling is that it takes time!  There is not a get-rich-quick scheme.

The Definition of Investing is, “The act of committing money or capital to a venture with the expectation of obtaining an additional income or profit.”
Legendary investor Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.” The goal of investing is to put your money to work in one or more types of investment vehicles like cryptocurrency, in the hopes of growing your money over time.
 
Remember we invest so we can “work smarter and not harder.” If you are like me, you work hard at your job.  It doesn’t matter whether you work for a company or own your own business. We all work long hours which requires sacrifice and adds stress to our lives. Using some of our hard-earned money and investing for our future needs is the best way to make the most of what you earn.  Pay yourself first by investing.
 
Investing is also about setting priorities for your money. Spending is way too easy and provides instant gratification.  New clothes, exotic vacations, fancy dinners and flashy sportscars are wonderful and make life more enjoyable. However, investing requires prioritizing the needs of our financial futures over the wants of our present desires.  Investing in cryptocurrency is a way to set aside money and put that money to work for you so that you can reap the rewards of your discipline in the future. This is how you receive a solid future.
 
There are several different ways you can invest in cryptocurrency, including putting money into coins, tokens, ICO’s, Bounty Campaigns, etc. Every investment vehicle has its positives and negatives.  There are no guarantees of making money, but a little work on your part can increase your odds of being successful. Analysis, research and even just plain reading up on crypto can help.
No one investing strategy or approach fits all. Every investor has different reasons for investing, different goals, different time horizons and varying degrees of comfort with investing. It’s important to define and articulate your own parameters.

You must set goals.  What do you want to achieve for the money that you will be investing? Is safety of your investment with some level of return sufficient? Are you trying to grow your money for a longer-term goal? You will even have different types of investments for different goals. Before you decide to invest any money into cryptocurrency it is imperative that you understand why you are investing and the result that you desire.  Goals should never be created in a vacuum. You also need to know your risk tolerance and your time-line as part of the goal-setting process.
Risk can mean a lot of things.  Investing in cryptocurrency means you have a risk of losing money. Your money invested can decrease in value, possibly to zero.  ALL investing involves risk in one way or another. Stocks often can go down in value over periods of time, just like crypto.  Do you remember what happened in 2008?  The S&P 500 dropped by 37%. This decline in the stock market was one of the worst in history.  Severe market corrections are not uncommon, especially in cryptocurrency!

How much of a drop-in value for your investments can you tolerate? Your tolerance of this risk is a function of when you need the money.  This is your time horizon.  Usually, the younger you are the less thought you give to fluctuations in the value of your investments.  This is the volatility of an investment.  You should align your investments with your time horizon.
How long are you going stay in an investment?  Warren Buffett rarely sells a stock he owns and doesn’t get rattled by market fluctuations. This is generally known as a “buy-and-hold” strategy.  There are extreme traders who buy and sell cryptocurrency daily. This is fine if you are a professional but is rarely a good strategy for the average investor.  I am not saying that you need to hold an investment forever.  Things change, and you should analyze your individual holdings on a set schedule to ensure they are still appropriate for your situation.

Some crypto-investment vehicles require sophisticated knowledge and monitoring.  Others are more set it and forget it. Your individual investment decisions should be based on your comfort level and your willingness to devote time to researching your choices.  An easy route is to choose a variety of cryptocurrencies.   A diverse portfolio of BTC, ETH, LTC, and BCH.  Crypto investors with more knowledge and experience might consider ICO’s.  It is important that you understand what you do know and don’t know. You should never be talked into something that you don’t understand or are uncomfortable with.  

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[thefaucetrunner]

Pretty good post. Crypto does appeal to people who don't have a lot of money to invest. It is the beginning of a brand new type of currency and we are just getting in on it. Most people don't even understand how it works yet or think that it's a scam. Although, honestly, a lot of people think that about foreign exchange and the stock market too. The delayed gratification necessary to lay out your money for crypto instead of toys and gadgets will pay off.

[Happiest]

Well, such a very long airticle, you deserve some merit though, wish I had one but alas. But as you have said, prior to any investment in cryptocurrency, there should be probably monitoring of it before entering into it to avoid loss. Most new investors makes this mistakes by just jumping into it without probably look into.

[seoincorporation]

Risk can mean a lot of things.  Investing in cryptocurrency means you have a risk of losing money. Your money invested can decrease in value, possibly to zero.  ALL investing involves risk in one way or another. Stocks often can go down in value over periods of time, just like crypto.  Do you remember what happened in 2008?  The S&P 500 dropped by 37%. This decline in the stock market was one of the worst in history.  Severe market corrections are not uncommon, especially in cryptocurrency!

Good article and this was my favorite part. I am tired of trying to explain to people that BTC is not the only volatile stuff in the market. Look at the price of vegetables,  avocados, for instance.
Congrats on your article, thanks and +merit for you.
Thanks for your contribution.

[bohr]

Pretty good post. Crypto does appeal to people who don't have a lot of money to invest. It is the beginning of a brand new type of currency and we are just getting in on it. Most people don't even understand how it works yet or think that it's a scam. Although, honestly, a lot of people think that about foreign exchange and the stock market too. The delayed gratification necessary to lay out your money for crypto instead of toys and gadgets will pay off.

Cryptocurrencies appeal to everyone not only to those that do not have money, now more and more institutional investors are putting their money in bitcoin and this is not really surprising they can get more profits in bitcoin in a single year than what they will get in many years or even decades in the traditional markets so bitcoin as you can see not only appeals to those that do not have a lot of money but to those who are rich as well.

[entrepmind23]

You must set goals.  What do you want to achieve for the money that you will be investing? Is safety of your investment with some level of return sufficient? Are you trying to grow your money for a longer-term goal? You will even have different types of investments for different goals. Before you decide to invest any money into cryptocurrency it is imperative that you understand why you are investing and the result that you desire.  Goals should never be created in a vacuum. You also need to know your risk tolerance and your time-line as part of the goal-setting process.

This is a good advise OP! People should know first what their goals are why they are investing or trading cryptocurrency and know the risk involve as well. The problem with the people nowadays is that they immediately invest into something and expect a return immediately because they heard from someone who earn 10x of their money after just a few weeks. Well it can happen but most likely, it is just rare case that you can get a return of your investment in a short amount of time especially if you are just depending on someone else for advise and not doing your own research.

I can see so many people in telegram asking why the price is going down even if it is just only the first week of hitting the exchanges. Well people are just so impatient nowadays. Most of the millionaires wait years before they reach that level and if you are a newbie and expect to be millionaire next month then you should learn more. Cryptocurrency investment is not a get rich quick scheme.

[GideonGono]

Nice post though now a days people just think their own or selfish rather. They tend to set a mind set that money first that goals. Having a goals is of the common reason or advice why to invest. And i wanna add some advice though investing through crypto you should learn some basics and talk to some pros, some crypto such as btc and different alt coins like eth and ltc . Some of the sites you will encounter just using by their names so be aware okay? , again another good advice appriciated it.

[ranjau]

The explanation is very good, this can be a science for me a beginner, now Cryptocurrency attracts everyone, investing in bitcoin is a lot of talking about everyone nowadays because the price sometimes shocks people.

[bitbunnny]

Very detailed explanation, I'm sure it will be helpful for some.
You can turn investing into science or make it very simple. Actualy, every basic rule that is valid for other investments could apply for investing in cryptocurrencies too. It's important that everyone adjusts investing to the own possibilities and not to overestimate how far you can go and how much you can potentialy lose.

[sand9999]

Very informative. Useful for all...especially in today's circumstances.

[Oceat]

In order to invest with low risk capabilities, one should do some research and gain all the available knowledge in order to use it for future references. Risk is already in there and we all have to do is to deal with it but with a good knowledge to become wiser than any other trader. Also practice will makes it perfect, so it is better if you practice while paying some of your money, at least you learn and that's what important in investing.

[Thamon]

My advice to anyone trying to make a lot of money in cryptos right now, is to invest into smaller value alt coins that have a potential to explode.

[carlisle1]

Pretty good post. Crypto does appeal to people who don't have a lot of money to invest. It is the beginning of a brand new type of currency and we are just getting in on it. Most people don't even understand how it works yet or think that it's a scam. Although, honestly, a lot of people think that about foreign exchange and the stock market too. The delayed gratification necessary to lay out your money for crypto instead of toys and gadgets will pay off.

but for me regarding cryptocurrency,investing don't only mean money,because here we can invest our time and effort,remember we can also gain here by participating campaigns that will require only labor,i dont know if im wrong here but this is how i see things in bitcointalk.org ...from the payments we ear then it can be consider as investment thay may gain profit in time

[matanglawin]

Investing in cryptocurrency is a mechanism for building wealth, but it is not only for the wealthy. This is why our community is growing.  Anyone can get started investing in crypto, and various options (BTC, ALT Coins, ICO’s) make it easy to begin with small amounts of fiat and add to a build a portfolio. What differentiates investing in crypto from gambling is that it takes time!  There is not a get-rich-quick scheme.

The Definition of Investing is, “The act of committing money or capital to a venture with the expectation of obtaining an additional income or profit.”
Legendary investor Warren Buffett defines investing as “… the process of laying out money now to receive more money in the future.” The goal of investing is to put your money to work in one or more types of investment vehicles like cryptocurrency, in the hopes of growing your money over time.
 
Remember we invest so we can “work smarter and not harder.” If you are like me, you work hard at your job.  It doesn’t matter whether you work for a company or own your own business. We all work long hours which requires sacrifice and adds stress to our lives. Using some of our hard-earned money and investing for our future needs is the best way to make the most of what you earn.  Pay yourself first by investing.
 
Investing is also about setting priorities for your money. Spending is way too easy and provides instant gratification.  New clothes, exotic vacations, fancy dinners and flashy sportscars are wonderful and make life more enjoyable. However, investing requires prioritizing the needs of our financial futures over the wants of our present desires.  Investing in cryptocurrency is a way to set aside money and put that money to work for you so that you can reap the rewards of your discipline in the future. This is how you receive a solid future.
 
There are several different ways you can invest in cryptocurrency, including putting money into coins, tokens, ICO’s, Bounty Campaigns, etc. Every investment vehicle has its positives and negatives.  There are no guarantees of making money, but a little work on your part can increase your odds of being successful. Analysis, research and even just plain reading up on crypto can help.
No one investing strategy or approach fits all. Every investor has different reasons for investing, different goals, different time horizons and varying degrees of comfort with investing. It’s important to define and articulate your own parameters.

You must set goals.  What do you want to achieve for the money that you will be investing? Is safety of your investment with some level of return sufficient? Are you trying to grow your money for a longer-term goal? You will even have different types of investments for different goals. Before you decide to invest any money into cryptocurrency it is imperative that you understand why you are investing and the result that you desire.  Goals should never be created in a vacuum. You also need to know your risk tolerance and your time-line as part of the goal-setting process.
Risk can mean a lot of things.  Investing in cryptocurrency means you have a risk of losing money. Your money invested can decrease in value, possibly to zero.  ALL investing involves risk in one way or another. Stocks often can go down in value over periods of time, just like crypto.  Do you remember what happened in 2008?  The S&P 500 dropped by 37%. This decline in the stock market was one of the worst in history.  Severe market corrections are not uncommon, especially in cryptocurrency!

How much of a drop-in value for your investments can you tolerate? Your tolerance of this risk is a function of when you need the money.  This is your time horizon.  Usually, the younger you are the less thought you give to fluctuations in the value of your investments.  This is the volatility of an investment.  You should align your investments with your time horizon.
How long are you going stay in an investment?  Warren Buffett rarely sells a stock he owns and doesn’t get rattled by market fluctuations. This is generally known as a “buy-and-hold” strategy.  There are extreme traders who buy and sell cryptocurrency daily. This is fine if you are a professional but is rarely a good strategy for the average investor.  I am not saying that you need to hold an investment forever.  Things change, and you should analyze your individual holdings on a set schedule to ensure they are still appropriate for your situation.

Some crypto-investment vehicles require sophisticated knowledge and monitoring.  Others are more set it and forget it. Your individual investment decisions should be based on your comfort level and your willingness to devote time to researching your choices.  An easy route is to choose a variety of cryptocurrencies.   A diverse portfolio of BTC, ETH, LTC, and BCH.  Crypto investors with more knowledge and experience might consider ICO’s.  It is important that you understand what you do know and don’t know. You should never be talked into something that you don’t understand or are uncomfortable with.  

A very good point indeed. Investing will always risk and that's a normal thing not only in Bitcoin but to most of the cryptos. From that,buy-and-hold concept has been done by the users and investors since then. People are still not that knowleadgeable when it comes on cryptos especially on investing into it which is advisable so that things will be already familiar with befofe engaging into it.

[genset88]

This is a very good explanation on crypto investing. Investing in crypto is very exciting, but should always be taken with caution. Crypto investments are highly volatile, which means one can make big gains and big losses. But what’s even more exciting than financial gain is the technology development. Blockchain is unleashing massive innovation, and the entire World is participating in this excitement. No one knows for sure what company will thrive in the future, but if you find a company with the right team and the right technology, then you are on right track to identifying a  good crypto investment.
 

To make a profit in Crypto we need a long time to accumulate the fluctuations in it, with the current market situation is very volatile and while many people have invested in These virtual currencies are because of the risks, I do not have a perfect project to spend but profits continue if I join it.

[tonylewisverdu]

good post. cryto is still in its infancy stage alot of people still dont know what is blockchain and crypto but its starting to take notice.. i still believe that crypto/blockchain is the future.. just count years and it will be widely use and accepted..

[BillCoin]

Great article.

A lot of people just don't understand that even if they are full long on something, it always has to make a price correction at some point, so even if you feel that it's going to go up in the long run, it doesn't say that it won't make a strong price correction, sometimes the price correction would be tens of percents.

[thecoder2017]

People had in mind that investing is a totally profitable as far as i know investing is like gambling its risky so before you invest be sure that its a quality project to avoid losing your money dont expect too much just wait for the outcome if its good or bad.

[faceoff97]

I would simoky advice to just buy a coin which has a stable price and also have been established for years.  Since most coin that are newly introduced are just scams, the credibility and authenticity of the project is hard yo recognized. Im holding coins right now and buying even mote right noe since the price is at dip. Investing is risky  be sure to just give ehat you can afford to lose.

[jlong187]

Thanks for sharing a great article!
I just fear that it is always a rist of loosing everything on every phase of your investing, so I dont invest everything I have.