Cryptocurrency Investing Strategies For Beginners And Professionals
We here at CryptoDetail love the questions we get from our loyal readers. Among our most frequent questions, we are constantly asked about crypto investments.
Well, whether you are a beginner or a seasoned professional, we have a few rules for you to follow that will lead you to be able to form your own personal strategy. Following these rules will let you find your "moon".
First: The Basic Rules
Before you even consider investing 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, in order to fully understand the tokens, which are (for the most part) meant to be investments, we must first learn the basics of the cryptosphere.
To begin your journey reading the "Crypto Bible" (our name for the Bitcoin Whitepaper) is essential. This will give you a firm understanding of what Bitcoin, and crypto, is supposed to be. The Whitepaper is a bit technical in places; and, it is full of words you won't likely understand. 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. So, now that you have read the Crypto Bible; it is time to dive in further.
Knowledge is power
Crank up your favorite search engine again. It is time to really get your base of knowledge built. As they say, knowledge is power. And, since you will be investing your hard earned money; you need all the power you can get. So, type in the words "Bitcoin Basics". Read every single page, on every single website, on the first twelve pages of that search. Yes, it is a lot of reading; but we are learning invaluable information here. So, read it all.
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.
But Wait; There's More
Yeah, you are not done learning quite yet. 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. 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 really need to understand all of this information. 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.
Invest in your passion
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 "air drops". 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.
Which 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 own interests. Out of the 7+ billion people on Earth; chances are good that if you are passionate about a subject, so are a lot of 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.
Once you find a few tokens that pique your interest; drop by bitcointalk. This is another great 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 found. 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 deeper.
Explore The Project and Token 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.
The strategy is ...
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 number of 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. 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.
Thanks for joining us on this exploration! Good luck on your own crypto investment adventure!! Happy HODLing!!!