How to Invest in Cryptocurrency: Strategies For Beginners That Actually Work
We here at CryptoDetail love the questions we get from our loyal readers. Among our most frequent questions, we are constantly asked how to invest in cryptocurrency.
Whether you are a beginner or a seasoned professional, we have a few rules for you to follow that will lead you to form your strategy. Following these rules will let you find your "Moon."
Before you even ask how to invest in cryptocurrency, you have to follow the CryptoDetail Investment Rule # 1 - We Never Invest in Anything That We Do Not Understand!
So, before you invest in anything in the cryptosphere, you must understand it. And, although we all know that Bitcoin and the other cryptocurrencies are NOT intended to be investments. However, to fully understand the tokens, which are (for the most part) meant to be included in your cryptocurrency investing strategy, we must first learn the basics of the cryptosphere.
Reading the "Crypto Bible" (our name for the Bitcoin Whitepaper) is essential to begin your journey. This will give you a firm understanding of what Bitcoin, and crypto, are supposed to be. The Whitepaper is a bit technical in places; it is full of words you won't likely understand. So, take your time and use Google (or your favorite search engine) and look up every one of those words.
Like we learned above, in CryptoDetail Investment Rule # 1, complete understanding is essential to create a cryptocurrency investing strategy. So, now that you have read the Crypto Bible, it is time to dive in further.
Cryptocurrency Investing Rule #1: Knowledge is Power
Crank up your favorite search engine again. It is time to get your base of knowledge building. As they say, experience is power. And, since you will be investing your hard-earned money, you need all the power you can get. So, type in words "Bitcoin Basics" Read every single page, on every unique website, on the first twelve pages of that search. Yes, it is a lot of reading; but we are learning invaluable information here. So, please read it all, starting with Bitcoin history and finishing with how much to invest in cryptocurrency.
In all those websites, you will read a bunch of catchphrases, a ton of sales hype, and a bit of FUD (comments designed to inspire Fear, Uncertainty, and Doubt) scattered all around. You are not looking for any of that mess. Right now, you are looking for repetitive facts that match what you learned reading the White Paper.
Invest in Your Passion
Yeah, you are not done learning quite yet. So, now we want you to repeat that process with the terms "blockchain," "Ethereum basics," and "ERC20 Tokens". Again, we understand that this is a lot of time and reading for a single cryptocurrency investing guide. But, you NEED this basis. After all, you are going to be investing in various ERC20 tokens. And those tokens live on the Ethereum blockchain. So, you need to understand all of this information. So, again, take your time and look up every word you have a question about along the way.
Whew; Now You Can Quit Reading; Right? Nope, not even close. Now that you have the basics, it is time to find something to invest in.
This is where it gets tricky. So, in this instance, it is time to look in three places. First, you are going to Reddit. Search for "ERC20 tokens", "new cryptos" and "airdrops". These will all show you the massive number of new and existing projects out there. Each of those tokens represents a piece of the idea behind the project that produced it.
This brings us to CryptoDetail rule # 2 - Always Invest In Your Passion. Following Rule # 2, you are going to look for crypto projects that match your interests. Out of the 7+ billion people on Earth, the chances are good that if you are passionate about a subject, so are many other people. And, at this point in the evolution of the cryptosphere, there are enough tokens and projects out there that will allow you to find something that matches at least one of your passions. So, search Reddit for those. This is one of the most valuable cryptocurrency investing tips.
Once you find a few tokens that pique your interest, drop by bitcointalk. This is another excellent resource. Here you will find what is called [ANN] pages for each project. Find those ANN pages that represent the projects and tokens you have already seen. Again, here, as you did on Reddit, READ EVERYTHING!
If you are still interested in a project after reading all of the sales hype, comments, and discussions about it on Reddit and BitCoinTalk, it is time to dig even more profound.
Explore The Project Completely
Now it is time to visit the project's website, white paper, abstract, and roadmap. Look to see who's on the team. Look them up. Does that information match what you read on their site? If all of that still looks good, join the team on Telegram. This is an excellent platform where the cryptosphere communicates. So, get on Telegram, find that project, and meet the team and the other investors. Participate, ask questions, and learn everything you can.
Make an Informed Decision
Once you have gone this deep, you are ready to make an informed decision. Do you want to put your money into this idea? If so, you can purchase those tokens directly from the website or on any exchanges (EtherDelta is one of our favorites as it is quick to get started with no BS). After you obtain your tokens be sure to follow Crypto Rule #1 - We Never Leave Our Cryptos Under Someone Else's Control. So, withdraw your tokens to your own ETH wallet. MyEtherWallet and MetaMask are our favorites.
From here, you HODL and wait. It could be weeks or months. Then, watch the trading price of your chosen tokens on the exchanges (a very addictive activity) and sell when the price reaches your "sell Target" (this is the number you set when you buy a token). Always stick to your Sell Target, and you will never go wrong.
And THAT, boys and girls, is the CryptoDetail Investing Strategy and a wrap of our Beginner's Guide to Cryptocurrency Investing.
Thanks for joining us on this exploration! Good luck with your crypto investment adventure!! Happy HODLing!!!