9 tips on investing money in crypto-currency in 2021
An absolute beginner’s guide
Have you heard about Crypto before but you have no idea from where to start or how to do it? Keep reading to know how to begin investing in it in 2021.
1. Decide the amount of money you are willing to invest and forget about it for a while
This is very important for you before even starting to consider it. It is a very profitable market but it is very volatile as well. You should always keep in mind that the money you invest in crypto can double or even multiply by 10 times but it can also go down to the bottom.
However, if you are patient and willing to leave that money there for a while it will more likely go up to the top at the end!
That is why I always suggest investing an amount of money that you are willing to lose or don’t need for the coming 12 months. Basically, you really don’t want to put in there all your savings and then not being able to pay the rent or bills.
2. Choose the exchange platforms that best suits you
Nowadays there are plenty of exchange platforms for every taste! Most of them offer trading options and different staking possibilities but not all are very user-friendly or easy to navigate for beginners: they use very specific terms and don’t make it easy for the user to find certain tools leading often to frustration.
To avoid all this, I’ve made a list here of the easiest but also trustworthy apps you can use to begin investing and hodling cryptocurrencies.
3. Diversify your wallet in order to reduce the risks
Don’t focus only on one coin even if everybody keeps saying Bitcoin is the ultimate best one. There are plenty of interesting projects out there and “Altcoins” that are worth the risk to buy.
If you have no idea what are the best coins to invest in, do your own research first and check also the CoinMarketCap website to follow up the up-to-date list of most important currencies.
4. Download the “CoinMarketCap” app and keep track of your portfolio
This app is very useful especially if you choose to split your wallet into several exchange platforms in order to maximize your gains. In this case, it is very difficult to keep track of your total portfolio but with the CoinMarketCap app, it is possible to save all transactions and have a very clear overview of your total gains or losses.
5. Be strong! You only lose money when you actually sell it
Before starting investing money in a such volatile market you better do your own research instead of just following the advice of one person.
We have all heard people saying “It is too risky, I’ve lost all my money” or “I became a millionaire with just 10k” but what is actually true about what they say? Everything and nothing.
The ugly truth is that people who have lost their money, they’ve sold at the wrong time due to panic while the other ones have probably waited years before they even considered selling their coins.
So don’t be a panic seller and have strong hands!
Always remember that there are constant ups and downs. That is completely normal and healthy for the market. You just have to be patient and don’t make fast decisions when it comes to sell or buy a coin.
6. Relax and “hodl” for at least one year in a bullish market or more if you are in a bearish one
Hodling is the term used in crypto when you are holding your currencies for a reasonable amount of time.
As said before, hodling is one of the best strategies in order to maximize your gains in time without having to stress about it or take risky decisions as day traders do. Obviously, the time needed depends on what sort of market you are in but if you are beginning now, 2021 is considered to be a bullish (positive) year for cryptocurrencies and you better start as soon as possible since prices are quite low right now.
7. Have a strategy in mind: start collecting your gains little by little when possible
Consider writing down an excel file for all your coins and divide different margin selling points until the final target you want to reach. Doing that you avoid the risk of losses while you start to collect little by little your profits without unnecessary stress because it is extremely difficult to sell at the absolute top of the curve even for experienced traders.
8. Save profits on a Stablecoin and stake it to gain more interest for as long as possible
When you decide to sell some of your profits, consider transferring them into a Stablecoin such as Tether for example in order to keep it safe from fluctuations and gain even more interest in it. Some exchange platforms give you up to 10% paid out daily/weekly for money monthly or flexible staked on Stablecoins. Read this article to find out the best platforms for it.
9. Once you’ve reached an amount of money you’re proud of Do the following
Don’t ever consider sending that money you’ve gained back to your local bank account. After all, you must have learned that normal banks give you ridiculously low interests while money is losing day by day its value due to inflation. So the best thing to do is to keep your money secured on a trustworthy platform that provides a visa card for you to spend it wherever you like.
In this way, you can also decide to keep a part of your wallet staked while you’re gaining passive income that you can spend easily with your card.
And what if you want to buy a house or an expensive car with those gains?
Just relax! A lot of companies and institutions are offering already the possibility to pay in Bitcoin or other cryptocurrencies.
