How to get rich by investing in cryptocurrencies

A few words to begin with

Before I start describing the investment strategy, I would like to make a few points.

• No, BTC is not behind the zenith and is not just for big players. It is still worth investing in and should make up at least 33% of your portfolio.
• You don’t have to buy the whole BTC. You can also buy a half BTC or 0.000001 BTC.
• If you haven’t purchased a given cryptocurrency for at least $ 500, feel free to leave it on the exchange (with 2FA security) and cough on your wallet.
• You can start with a little. It is always better to invest $ 100 than $ 0.
• Don’t invest in a cryptocurrency just because it’s recommended on the Internet. Don’t take serious posts in Facebook groups (sometimes it’s better not to even read it).
• Only invest money that you can lose. Otherwise, cryptocurrencies will completely ruin you. It is difficult to withstand the psychological pressure when everything falls and you just watch your euros / dollars disappear.
• Buy when it falls and sell when it grows. Never the other way around!
• If something jumps 100%, it’s likely to fall.
• No one (except perhaps Warren Buffet and Masterluc) sees the future.
• If you are not a professional or you do not know a professional, forget about ICO, shitcoins, pump-n-dump schemes, margin trading, short-circuiting and similar attempts to get rich quick.

You move on slowly

Do you know the story of the hare and the turtle? The tortoise eventually won the race.

It is very similar on the cryptocurrency exchange. If you want to double your portfolio in two months, go for it! Try it, speculate, maybe you will succeed. Maybe once, two, three times you’ll end up in the mouth. But sooner or later, your happiness will end.

Don’t rely on luck

It should be noted that there are tens of thousands on the exchange, some hundreds of thousands of people and everyone wants to make money. However, trading is a zero-score game. In order for one to earn, another must redo. In the current state of the market, it is all the more challenging because money flows out of the market. You simply won’t make speculation.

Why? Unless you are a trained expert with several years of experience, unless you can do a proper technical analysis, you do not have the tools (often very expensive) to help you identify indicators… So you have no chance and you have to rely on luck. It will be with you once, twice, but for the third time it will betray you and you will end up in the red.

Another reason is, of course, robots. Crypto exchanges are full of them. A large part of the daily turnover of each exchange will be made by robots armed with trading algorithms, neural networks, real-time market views, huge resources and the ability to manipulate the market.

Invest wisely if you want to get rich

Is it worthwhile to give money to cryptocurrencies for HODL (long-term possession)? What is it good for? I’ll redo it anyway.

However, the fact is that the value of cryptocurrencies increases over time. Sure, short-term or long-term corrections are happening and there are few of them, but the overall trend is upward. The year 2018 is poor, but 70% of the declines were already a lot. Compared to the previous market, cryptocurrencies show an overall growth of more than 300%, and according to the amount of positive foundation and Technical Analysis, it seems that we are already sinking. The rebound may take some time, but investment in coins and the ecosystem that surrounds them is not over. On the contrary. Many companies use these months to prepare for another hype. And he will come.

New technologies show the future

Following the advent of “second generation” cryptocurrencies such as ETH, multi-billion conglomerates also became interested in this segment. Take the EEA, for example. There are more than 150 big players in this alliance, including Microsoft, Intel, MasterCard, Visa, Cisco… And they are all developing decentralized applications on ETH blockchain.

You can already pay with BTC in almost every major city, there are credit cards with an account maintained in BTC…

Therefore, judicious investment in selected cryptocurrencies should bring you a profit in the long run. Maybe even thousands of percent. No one today can say how high the cryptocurrencies get.

• You can find a list of all interesting cryptocurrencies here.

A long-term investment (so-called HODL) in interesting coins is finally starting to make sense. however, it is important to know:

What must a prospective cryptocurrency meet?

These characteristics are absolutely necessary in the long run:

• Behind it are skilled people with a well-known and successful past
• It is different from a flood of other coins
• It is often written about (if no one knows about it, it will probably not be used)
• It has a real use in the world

And we have a few more features to help you differentiate promising cryptocurrencies from waste, but they’re not 100% complete.

• It has a history of several years (a cryptocurrency that has survived five years, still has a large group of users and in the long run increases its value has a better chance than a several-month project)
• It has a capitalization of at least $ 100 million (again, this is not necessary, but a large capitalization is often an indicator of success)
• At the beginning there was no ICO (only my personal opinion, although ETH is a clear exception confirming the rule)
• Large companies are working on it
• Fast transactions (BTC has “slow” transactions but still succeeds)
• Proof-of-stake (it is possible that this consensus algorithm will one day replace current mining-based proof-of-work systems)
• It is not anonymous (anonymous currencies will not be liked by governments – but currently anonymity is a big plus)
• It’s not a fork (my personal opinion – so I wouldn’t put money in LTC either)

How to invest?

From a technical point of view, the easiest way is to buy BTC, send it to the exchange and exchange it for the cryptocurrencies you have carefully chosen.

How to get rich by investing in cryptocurrencies (five basic rules)

1. Be patient, forget about quick money, guaranteed tips from the internet, pumps and similar nonsense… Don’t forget the patience. A lot of people made a few purchases, made a hundred euros, and that was basically the end.
2. Choose promising cryptocurrencies
3. Invest regularly and in smaller amounts
4. Invest in the long run for several months
5. Stay informed – read about news from the market – give us a like Facebook and you won’t miss anything important

A few words in conclusion

Before you actually invest your money, ask yourself – “Do I believe in cryptocurrencies and the idea with which they were created?” If the answer is no (or if you don’t know what idea they were created with), then don’t go for it. The crypto-market is incredibly volatile. It jumps by tens of percent in both directions and is not for the faint of heart.

Study. Really. Every successful investor can also answer the questions at 3 a.:

It is not necessary to understand exactly the technological background of every cryptocurrency in which you invest, but you should have at least a basic overview…

You have to be patient. Legendary investor Warren Buffet is right (and it doesn’t matter that he’s talking about stocks)

Disclaimer: This article is for information purposes only and should not be construed as investment advice.