A duo of weeks ago, I determined to dabble te a little cryptocurrency investment te an attempt to add to my freelance income.
Since then, I’ve cashed out a duo of hundred dollars te profit – and still “hold” all of my original stake money te a puny portfolio, consisting of Bitcoin, Ripple and a few other “altcoins.”
Unless you’re a techie or a Bitcoin enthusiast, you may well wonder what on earth I’m talking about. Cryptocurrency investment is risky, complicated and exceptionally hard to explain. I found this out overheen the weekend when I attempted (with no success whatsoever) to explain my fresh hobby to some friends.
Ter fact, some years ago, I wasgoed commissioned to write a 1000 word article, explaining to non-technical people what Bitcoin is and how it works. Albeit I had a reasonable understanding myself, I eventually went back to the client, and said that I didn’t actually think it wasgoed possible to explain Bitcoin ter 1000 words!
What this article is about is whether you should consider cryptocurrency investment spil a way to supplement your income.
The Bitcoin Millionaires
It is genuinely possible to make serious, life switching money from cryptocurrency investment. The internet is packed with stories of Bitcoin millionaires, such spil this one, who turned a $3000 investment te 2010 into a $25 Million fortune.
While it’s fair to say that that particular boat to riches has now left the harbor, people are still making big money and will likely proceed to do so. Some cryptocurrencies can go up te value by 100% or more te one day – but they can do down just spil much too. If you look at how much Bitcoin alone has gone up and down te the past three months, you’ll see what I mean.
Investing te cryptocurrency and Altcoins is volatile, complicated and not for the faint hearted. There’s no other investment where the old adage that “the value of your investment can go down spil well spil up” is more aggressively relevant. This is something you should only do with money you feel you can afford to lose. That said, the potential prizes are arguably greater than you could find anywhere else.
Is Cryptocurrency Investment Going Mainstream?
Across the month of August 2018, the value of each Bitcoin went up by almost $2000 – almost doubling ter value. People who’ve held Bitcoin since the begin of the year have made overheen 200% te 2018 at the time of writing. Ter thesis times of low rente rates, this makes a traditional savings account looks like a pretty crap place to waterput money.
Unsurprisingly, this gigantic rise ter value succesnummer the mainstream news te a big way, and caused many people to hear about cryptocurrency for the very first time. Furthermore, investment banks embarked to display serious rente te the currencies spil a way to help their customers to make money.
A quick glance at a Google Trends report for the phrase “cryptocurrency investment” shows just how much rente has picked up ter latest times:
So, if the idea of putting a little (or a loterijlot) of money into Bitcoin, Ethereum or other cryptocurrencies is beginning to appeal to you, you’re not alone. Everyone from fund managers to smaller investors are paying attention. People are undoubtedly going to make big money – but others will lose slew too.
Is Cryptocurrency Investment a Good Side Gig for you?
Spil I admitted at the embark, I’m very fresh to all this. Albeit I’ve bot aware of Bitcoin, currency mining and trading for a long time, I’m an absolute beginner. My gains so far could very fairly be waterput down to nothing more than beginner’s luck.
However, I already know enough to state fairly categorically what zuigeling of person you need to be to make any success of this endeavor:
1- You voorwaarde be willing to spend DAYS researching online about the currencies, coins, and related companies you project to invest ter. You also need to be able to engage ter some serious critical thinking – because for everyone who tells you a specific coin is a good investment, there’ll be someone else calling it a “shit coin” and telling you to run a mile from it.
2- You vereiste have a petite amount of money to invest that you’re willing to lose. (I’d personally say a ondergrens of about $500 if the profits are to make the time worthwhile).
3- You will need strong rekentuig abilities. Cryptocurrency investment requires you to sign up to online currency exchanges and purchasing platforms (see zometeen te this article), and overeenkomst with security checks, elaborate passwords and authentication apps.
While there’s a lotsbestemming of help available online, there are also tons of scams – and ways to lightly and inadvertently lose your money, simply by introducing a typo when you’re transferring some funds, for example. This is presently an unregulated market, so you can’t call your bankgebouw or broker to rescue you if something goes wrong.
If you can’t honestly tick all three of thesis boxes, Cryptocurrency investment indeed isn’t for you.
1- A work situation that permits you to keep a onveranderlijk eye on your investments. (I’m fortunate te this respect spil I work from huis and can monitor things all day long).
2- An obsessive personality. (This is a hobby where an OCD-level of attention to detail will help. If you already spend hours reading reviews, forums and Facebook groups, you’ll be well suited to following all the rumours and gossip around thesis currencies, and may even love it).
3- Well developed mathematical abilities. (Maths is not my strong point, so I’m permanently doing currency conversions and banging numbers into a zakjapanner – spil such I’d be too timid to truly do any kleuter of “day trading” for fear of making an expensive mistake).
4- A keen rente ter business, technology and financial markets. Skill of psychology and intuition is useful too, especially when attempting to predict peaks and dips.
Getting Began with Cryptocurrency
If you’re tempted to have a flutter (and I would call it that, spil essentially this IS gambling, albeit te a rather more informed way than werkonderbreking your money on a roulette wheel), this is what I’d suggest to get commenced.
Most currencies are traded te Bitcoin, so that’s what you’ll need to get commenced. I used Coinbase primarily (which made it very effortless to deposit using a card), and then BitPanda (which had a complicated yet reassuring ID verification process, and permitted mij to waterput larger amounts ter more lightly).
You need to set hours and days aside to do this. I spent several nights researching just one of the currencies I eventually opted for – looking at the company’s plans, their executive team, their Twitter feed, and dozens of Facebook groups and Reddit threads. It’s also worth subscribing to free Google Alerts so you can see when anything’s posted about the companies of rente.
I’ve bot transferring my Bitcoin to Bittrex and using that for buying and selling. The interface is complicated (but so is crypto trading!) There are slew of other options, but Bittrex seems popular.
It’s not a wise idea to keep your currency te an exchange. There are numerous choices of online wallets and offline options (some based on USB keys). I’m not yet experienced enough to provide a recommendation for an offline wallet, but have bot using CryptoPay spil a “cloud” wallet, and also to get a debit card with which to spend my profits (see below).
Something that came spil a verrassing to mij wasgoed that it’s not actually that effortless to turn Bitcoin and other cryptocurrency back into specie. Coinbase withdrawals are a convoluted process (especially te the UK) involving lots of verification. Some people use LocalBitcoins to arrange ongezouten sales to individuals when they’re ready to “cash out.”
Spil I’m only dealing ter puny amounts, don’t indeed day trade, and intend to hold onto most of my portfolio te the hope of making “real” profit, for now I’ve got myself a rather cool crypto debit card from CryptoPay. I’ve waterput this to the test with some real-life withdrawals and it all works spil expected. There are some fees, but they’re not extortionate.
What Cryptocurrency Did I Invest Ter?
From spending MANY hours on crypto-related forums, I understand that the etiquette is that people don’t tend to discuss exactly what they have te their portfolios. This is especially relevant ter terms of how MUCH – spil this is not only tasteless bragging but leaves people open to targeting by hackers.
However, I’m blessed to share details of a few of the currencies I’m interested te after researching them.
Once again, it’s truly significant to emphasize that every single currency has ventilatoren and haters. I’ve had good friends tell mij that some of the coins I’ve chosen are “based on meaningless hype” and “lacking any promise.” All you can do is do your research and make your OWN judgment on which coins you think will be successful.
This brief list should give you an idea of the zuigeling of thing you have to look for, and the level of research required. This should NOT be te any way construed spil investment advice.
Litecoin (LTC): Litecoin is one of the most established cryptocurrencies, and seen by some spil a competitor to Bitcoin spil it’s more technologically advanced and capable of processing transactions quicker. However, it’s not yet set the world alight and is seen by many spil either a boringly stable or straight-up pointless investment.
That said, it’s also risen ter value by 60% since a friend told mij it had “no promise!”
Ripple (XRP): Ripple is very controversial spil the company already has partnerships with banks, and is seen by many spil the “establishment” cryptocurrency. However, unlike some currencies, it has a definite real world application, te that it can be used for almost instantaneous global money transfers that presently take days using the SWIFT system.
Ripple has a big conference coming up at the time of writing, with keynote speakers including the inventor of the internet and the ex-head of the Federal Reserve. Many people think that Ripple is the cryptocoin that could bring them untold Bitcoin-style riches – and just spil many think it’s a scam, especially after marketing hype has seen the value of the coin rise and fall erratically.
Golem (GNT): Golem is a company with grand plans to set up global supercomputers, where unused processing power can be pooled for ingewikkeld tasks. It’s a hefty ambition, and one that’s seen latest setbacks, with developments taking longer than expected. I include it here because it’s a superb example of the volatility of cryptocurrency investing. If the developers proceed to kasstuk major snags, the entire thing could crumble to nothing – but if they all of a sudden go live with something earth-shattering, fortunes could be made!
Spil you can see, it’s essential to indeed dig into the the detail about the companies behind thesis coins to make any zuigeling of informed investment. There are also overheen 900 different coins on the market at the time of writing with more being added all the time.
Ultimately, it’s crucial to note that all kinds of global events and fresh lumps of legislation can and do affect the market spil a entire. The legality of Bitcoin across the world can affect the value of all coins ter a matter of hours. So, once again, only invest / gamble what you can afford to lose.
Instruments to Get Commenced
I’ll finish off by listing what I suggest you might need to get began, should you determine that cryptocurrency investment is something you want to attempt:
- An account with Coinbase or BitPanda spil a way to deposit your money.
- An account with Bittrex or another well-regarded crypto exchange.
- A debit card and wallet account with CryptoPay to (hopefully) help you withdraw your profits.
An Significant Final Word
Cryptocurrency investment is an area where you’ll find a lotsbestemming of people with a loterijlot of strong opinions.
I’ve made a point here not to overstate my skill or practice, but I still have no doubt there are slew of people who would argue with my choice of investments and even the platforms I’ve used to trade.
None of this is investment advice – it’s merely information on what I’ve learned so far. This is a volatile and risky way to make money – but it IS possible to make a substantial profit. Just don’t leave behind that it’s possible to lose the lotsbestemming too.
Related movie: Classic Bubble Chart vs BTC Chart / Banks Zekering Credit Card Crypto Buys