In July 2017, I started studying cryptocurrencies.
I was fascinated by the technology, and I became convinced that the most important cryptocurrency would be Bitcoin. If there’s one thing I’ve learned from history, it’s that the best time to invest in something is when it just came out of a bubble.
This is why I bought Bitcoin in February 2015 after it crashed from $1,200 to $180. It was down 85% from its all-time high. I bought more in August 2015 after a crash from $550 to $200 — a crash of 63%. Since then, I have been adding about 0.5% of my net worth every month to my stash of Bitcoins.
Investing in cryptocurrencies is one of the most exciting things you can do right now. This is especially true if you get in early and watch as your investments explode in value.
I first got into cryptocurrencies back in 2013, when I was looking for ways to increase my passive income. Since then, I have invested over a million dollars into various coins and have watched my net worth grow to more than $5 million.
Today, I want to share with you my knowledge about cryptocurrencies and help you make an educated decision on whether this investment class is right for you or not.
In this article, I’ll focus on four aspects:
What are cryptocurrencies?
Why should you invest in cryptocurrencies?
How to invest in cryptocurrencies?
What are the best cryptocurrencies to invest in?
It’s been a while since I posted my last post on crypto-currencies. Since then, I have been doing a lot of research on the crypto-currency structure and how to invest in them. I am planning to make another series of posts about different crypto-currencies, but for now, I want to talk about a few important points about investing in them.
First off, one thing is for sure: Bitcoin is here to stay. Some people think that Bitcoin is a “bubble” and that the price can go down at any moment. That may be true, but it doesn’t mean that the currency itself is going away. Bitcoin is here to stay because it has proven itself as an alternative to fiat currencies (like the dollar or euro). The price will fluctuate over time because of demand and supply, just like any other asset class. However, if you are looking at Bitcoin as an investment opportunity, you should think twice before jumping in head first.
I know the price of Bitcoin has gone up a lot recently. As I write this, it’s trading at $8,165 after starting the year at $966. That’s an increase of over 750%.
I get a lot of questions from people who are interested in investing in cryptocurrencies. And to be honest, it can be very tempting to want to get involved.
The rise we have seen in cryptocurrencies is unlike anything the world has ever seen before. But does that mean you should invest?
What is the best way for me to invest? What are your thoughts on Bitcoin? Can you make money with cryptocurrency?
In this article I am going to answer all these questions and more.
And I will even tell you how you can start investing today!
Don’t invest in cryptocurrency companies until you understand what they do, who their customers are, and how their technology works. Ask for a demo of the product. If the company doesn’t have a working product, don’t invest.
Don’t invest in cryptocurrency companies that are in it for the money alone. The only ones that survive long term are those that have a genuine passion for what they do. Look for founders and senior management who have skin in the game (own equity). Management should be aligned with your interests as an investor by having meaningful amounts of their own money invested as well.
Companies that encourage customers to speculate on price will eventually face regulatory scrutiny (e.g., BitConnect). Do not invest in companies whose business model depends on speculation.
Cryptocurrency is built on open protocols and open source software, which means it is very easy to copy ideas and code. Do not invest in companies with no competitive advantage, or no sustainable business model (e.g., Bitconnect).
If you don’t understand the competitive landscape for a particular company, don’t invest in it. There are usually many competitors providing similar functionality (e.g., there are hundreds of exchanges competing to be the
Cryptocurrency Investing Advice – DYOR
As a cryptocurrency investor, you have to do a lot of research. There’s just no way around it. This is because cryptocurrencies are extremely volatile and speculative by nature. If you don’t know what you’re doing, you could easily lose your investment. This is why we recommend the DYOR principle: Do Your Own Research!
As a beginner, there is a lot to learn about cryptocurrencies and the cryptocurrency market. To help you get started, we created this list of our favorite cryptocurrency articles and videos. We will update and expand this list as we discover new resources.
Best Cryptocurrency Articles
The Best Cryptocurrency Articles For Beginners
The Crypto Investing Bible: The Ultimate Guide About Blockchain, Mining, Trading, ICO, Ethereum Platform, Exchanges, Top Cryptocurrencies for Investing and Perfect Strategies to Make Money by Alan T. Norman
Cryptoassets: The Innovative Investor’s Guide to Bitcoin and Beyond by Chris Burniske & Jack Tatar
Investment Banking Explained: An Insider’s Guide to the Industry by Michel Fleuriet & Jean Dermine
Cryptoassets by Chris Burniske & Jack Tatar
Blockchain
When it comes to investing in cryptocurrency, you first need to decide what your endgame is. Are you looking to day trade cryptocurrencies and make a very quick profit? Or are you looking to hold for the long-term?
These questions will determine the type of company that you look at, and there are some great companies that are actually run by the founders themselves. Founders are more trustworthy because we have seen that they have skin in the game. They’re not just a nameless, faceless person behind a screen.
Crypto is about uniting people around the world, so why would you want to trust someone who isn’t willing to step out from behind their screen and show who they really are?
It is almost impossible for a founder who has invested their own time, energy, and money into building a product or service from scratch to be dishonest with their customers because they will have a reputation on the line.