Saturday, April 20, 2024

How to Invest in Cryptocurrency

invest in cryptocurrency

Do you need to learn how to invest in cryptocurrency? If so, you’ve come to the right place. The first thing you need to learn about crypto investing is the nature of the thing. This helps to make sound, informed investing choices based on time-tested principles.

Cryptocurrency investing is not like buying stock in a company or purchasing a savings bond. There is money to be made in crypto, but just as equal an opportunity for money to be lost if you don’t proceed with caution.

What kind of principles? Believe it or not, they aren’t what you think they are. The principle “Never give a sucker an even break” is one.

Are You A Cryptocurrency Loser?

Suckers and losers in the crypto world are those who fail to grasp the ephemeral nature of certain kinds of investing. Ephemeral as in, if you lose your cryptocurrency keys on paper or stored in a digital wallet and have no backup of those keys, you lose your money. Only a fool keeps only ONE SET of their crypto keys.

Cryptocurrency is not a long-term buy-and-hold investment that will lead you into the glory days of your retirement. Investing as though it IS that? That makes you a cryptocurrency loser. Not today, and maybe not tomorrow, but when that big price correction comes? Let us remember how Elon Musk’s single Twitter post caused him to lose US$15 billion worth in Bitcoin value.

Any investment that touchy requires some special handling. And the first thing to learn about that special handling? You don’t get to “fire and forget” about your crypto investment. You need to monitor it, pay attention to trends, and anticipate the tough times when possible. But as Elon Musk’s activities in this realm have shown us, it’s not always possible.

And that’s another good reason to diversify your investments outside of cryptocurrencies.

Study Other Investment Platforms

One very good way to learn how to invest in cryptocurrency? Study other monetary instruments and types of investments. Do you know how bond investing works? Have you ever examined Treasuries, commodities trading, and even day trading? Knowing how these markets work–especially for things like margin calls and other potential pitfalls for new investors–is an important part of being an informed consumer.

Learning how these platforms work–including account setup, security, and complaint resolution–will help you more successfully navigate cryptocurrency transactions. The used car buyer who doesn’t know the standard tricks of the trade is easier to take advantage of than the used car buyer who doesn’t know what a salvage title is.

And if you want to invest in cryptocurrency but don’t have an exit strategy? Don’t even bother wasting your time finding a platform, researching Bitcoin, Ethereum, and other cryptocurrencies. Instead, take your money directly to the toilet and throw it on in. Hit the flush handle as fast as you can for better and more satisfying long-term results than for investing in crypto without a plan to divest yourself and get out in a hurry if you need to do so.

Lastly, if you are going to open an account with a cryptocurrency broker, don’t pay full price. Try and get some cash back or otherwise find a discount.

For example, Dollar Dig has discounts on:

Nexo => .2% back
Coinsmart => $25 back
Phemex => $60 back

You can get the details at Dollar Dig. Just search for “crypto” in the menu box at the top.

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