Bitcoin has risen massively from 450 dollars to over 10,000 dollars in a few years and blockchain technology could be the future as more and more retailers begin to use it as a form of payment.
If you’ve been considering investing in cryptocurrency here is my take on it. I’m not an expert but this may guide you in the right direction.
I used to play poker for while. If you understand it there is something called pot odds that you can apply to cryptocurrency. What that means is that even though investing in cryptocurrency is risky.
The pot odds make up for it however for example on ethereum 10 pounds invested would have turned into 900 in a year. This means the returns can be great which makes it all the more worthwhile even to put a small amount in.
The cryptocurrency boom has never happened before and will never happen again. What a time to be alive. Why not be in the game because this could really be a great chance to become financially free and as I always say the biggest risk of all is not even trying.
Cryptocurrency will not be stopped it’s just like Uber all evolution is met with resistance and things are being ironed out right now.
It’s still in the infant stage in my opinion and as it gets adopted more and more we will see it become smoother to deal with. Right now you have the chance to invest right at the beginning before it becomes mainstream.
To learn more about bitcoin and cryptocurrency I recommend the Banking on Bitcoin documentary.
Bitcoin is a risky and volatile investment and one of the rules of investing is diversification which is why you shouldn’t put all your money into bitcoin.
I suggest spreading your money between at least a few different cryptocurrencies to minimise risk.
That said you shouldn’t invest all your money into cryptocurrency either and only invest what you’re okay with losing. Have other investments as well such as property and stocks.
Long-term holding investing every month to take advantage of dollar cost averaging is always my strategy and it stays the same for cryptocurrency.
I see there being huge fluctuations during this period and I am prepared to hold for 5 – 10 years and seeing what value my investment has then.
I normally adjust all my portfolios every 6 months at a minimum to see if some coins/investments will not make the cut for the next period.
How to buy Bitcoin
I recommend using a platform called Coinbase which is the most popular platform right now to buy from.
Here’s a quick guide:
First set up an account which is a standard process for any website by giving your full name, email address and entering a password of your choice.
You will then be asked to give your phone number and asked to enter a verification code sent by Coinbase.
There are two options when it comes to purchasing bitcoin on Coinbase. One is via bank transfer and the other is with a credit card.
1 Bitcoin is worth around 10,000 dollars right now but you don’t need to buy a whole one you can buy fractions of it.
This will be stored in your bitcoin wallet which you can use to transfer to other peoples or other wallets you have.
PRO TIP: Use my code and we both receive 10 dollars of bitcoin FREE 🙂 with 100 dollars purchased. Once you do this I suggest moving to the next section where I show you how to invest with minimal fees.
When it comes to investing, fees can be a spanner in the works and take more of your earnings then they should. It’s worth finding a robust system that minimises this even if it takes longer.
I found this great video after much research that allows me to buy cryptocurrency with ZERO fees on Coinbase using their linked exchange GDAX. See below:
Coinbase is the biggest exchange for 4 of the biggest cryptocurrencies Bitcoin, Litecoin, Ethereum and Bitcoin Cash. There are thousands of other coins however and many promising ones with profits to be made. To do this you have to use another exchange.
My recommendation is Binance (use my link to save on fees and support me. Many thanks) which is the fastest growing exchange in the world.
It has a great UI and I have never had any issues with it in terms of lag time and coin deposits.
At this moment you can buy over 946 coins on it, which is a huge variety. They also give you the users a chance to vote every month for what new coins to list.
It also has the lowest fees of all exchanges at the moment at 0.1% and if you buy binance coins (BNB) the fee is half that in comparison to another large exchange Bittrex that charges a whopping 0.25%.
How you use Binance
You can’t buy coins with Fiat (cash) on Binance meaning you need bitcoin to buy other coins so you need to transfer the amount of bitcoin you want to use from Gdax (linked with Coinbase but zero fees) to your deposit address.
After that click on exchange at the top on the far left and you will see a screen like the one below then find the coin you want to buy paired with bitcoin.
There are two main ways buy:
Limit orders where you set a desired price below the market value that you’re willing to buy for and when a seller comes along willing to sell at that price it will be sold. This is a good way to save money if you’re willing to be patient.
Market orders If you want a quick transaction you can buy at the market price.
My current ongoing investment portfolio going into 2018 consists of Ripple (XRP), Monero (XMR), Neo (NEO), Ethereum (ETH), Litecoin (LTC) and Bitcoin (BTC).
Other app/website recommendations
Coinmarketcap which gives you up to date stats on cryptocurrencies such as the price, circulating supply and market cap.
Blockfolio allows you to manually input all investments you make with cryptocurrency at the price you bought it at and then shows you how much each one has increased or decreased so you can see the profit or loss in real time.
I hope you found some value in this post. If you did please share / leave a comment with your thoughts below!