So you figured you want to Invest in bitcoin, but just don't know how?
Well funny that, because here's the complete guide that you'll love! Let's do this!
Before we start, I’d just like to make 2 things clear:
- Investing in anything has a risk to it, you can either win or lose
and
- You’ll have to buy bitcoins before you can invest, but there are still ways you can get free Bitcoins
With the disclaimer and notice aside, let's do this! Now I’ll make this as simple as possible so don’t skip a line because it's as simple as it is right now.
Tracking your Bitcoin or other Coin Investment using CoinMKTCap
It would be quite stupid to invest in something, leave it there for a few years and pop back to see what’s happened! That's what I call blind trading.
You’ll have to keep track of your Bitcoin investment and to do that we’ll be using a free website tracker called Coinmarketcap or CoinMKTCap for short.
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Now there are 3 main factors you’ll have to get used to with CoinMKTCap, they’ll dramatically help you make decisions when you want to buy or sell any of your coins aka Investing!
Let’s start with Factor 1: The Price... Scroll please
Bitcoin Investing Key Factor 1: Analysing the Price
OfCourse you’ll have to keep track of the price, without that, it will be very funny investing, oh god just thinking about investing into a coin without a price makes me chuckle :smile:
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Now before you invest you should ask yourself this:
- Is the coin worth the current price
and
- Does it have some great future potential, meaning, does it actually solve problems the world needs solved?
Well of course if your coin didn’t meet any of the 2 factors of what a good coin to invest in is, then I’ve still got you covered.
These are the 4 best coins I picked to help you choose a good coin as a start of your cryptocurrency investing career.
Now as always research is key before you invest with your coin.
You shouldn’t spend money on a coin that will never grow, it’s a waste, moving on there isn’t much to discuss about with the price factor because it is what it is.
If you truly believe in your coin and you think its current price is quite “cheap” tthen, by all means, go ahead (but finish reading this first).
Bitcoin Investing Key Factor 2: Paying attention to the 24hr trade volume
The trade volume is a very helpful tool when investing, actually, scratch that, it’s an essential thing you should look at before you fantasise about becoming a billionaire
“So, why is it so important?”
Well without enough volume, then you’ll be buying into a dead coin (there are some exceptions, but for the most part).
“Ok well, then what is volume?”
Volume is the amount of money traded (buying and selling of a coin) within a 24 hour period.
“WTF do you mean? I need an example!”
Oh no probs! Here’s a simple example:
- If the volume of a coin was $50 then that would mean within the 24 hour period only $50 worth of trading happened, now that's bad!
You should always try to invest in a coin that has at least $1000 worth of trading volume.
That would really ease off the anxiety you would get when investing into it knowing it has some sort of trading and support around it.
Oh and as a side note, if you're investing in only bitcoin then volume isn’t something you’ll really have to worry about when investing in bitcoins because it’s always been the highest volume coin till this day!
Bitcoin Investing Key Factor 3: Utilising the Price Graph
The price graph is a very powerful tool to help see your investments history and make decisions about your investments future considering its past.
Many people use price graphs and apply different techniques to speculate the price of Bitcoin or any other coins for the future.
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Some predictions are right, but some are wrong, but the point is before and after investing, you should keep track of your coins.
Always monitor (but not constantly, we'll talk about that a bit later) the price, price graph and volume, then make important decisions like:
- Taking the risk of either short or long term investing.
or
- Sell off your current coin for another one that's a more worthy replacement.
So, when should I buy or sell my coin? Long term or Short term?
Well, the sad reality is most people actually buy their coin at a high price because of a pump and then sell low to just get out of the coin when the dumping starts.
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This is actually a very common scheme called pump and dump scheme so definitely watch out!
But as a side note, this doesn't necessarily affect Bitcoin and others in its league as much as other cheap and not widely known coins.
“Ok so you told me how people lose money and different schemes but you still didn’t tell me when to sell off my coin”
Well, I really can’t because it’s up to you.
All in all, if you can sell for a profit go for it, but if your coin is crashing and you truly believe the coin will rise in the future because of its uses then hold or sell off for a small loss and reinvest as it starts to gain traction again.
Now before I go any further I would just like to recommend Tai Zen (this isn’t an affiliate) he’s an amazing cryptocurrency YouTuber which makes videos all about investing.
Go over there and tell him I (Martin...) sent you over, he has cool videos that's for sure!
Which is better, long term or short term investing?
Of Course long-term investing is better, well that’s my personal choice but so far I’ve been really successful doing this.
Take for example the Ethereum release, where I picked some up and held till it’s peak price point in March of 2016, or Bitcoins steady rise from 200 to 600
I wouldn't have got anywhere near as much if I sold them as soon as I saw a price rise
The Biggest Noob Mistake: Checking the prices every hour
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To add to what I just said a very big no-no is checking the prices per hour
I personally still remember when I was just starting to invest how addicted I was to checking the prices.
It was literally taking over my life! I checked it at restaurants, my home, any computer connected to the internet, phones, at a park, and even in the bathroom :flushed:
But lesson learned, at the end of the day, I realised I still sold my coins for similar prices when I checked 3 times a day in comparison to 20 times.
Oh and remember, don’t invest what you can’t afford to lose!
Come on admit it, you’ve heard just about every other website and video say it too, it’s not cliche for no reason.
Investing is a risk no matter what, so please the moment you invest consider your money gone, only think of it as a gain if you sell off for a profit.
"So how do I get some Bitcoins to start?"
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Well if you’ve decided you want to start investing then I’ve got quite a few places to recommend to you.
Now I do have a whole post all about it here and a whole freaking e-Book for free that covers the 3 Big topics, which are:
- The Basics of Bitcoin which will teach you everything from getting a wallet to buying some bitcoins, how it works, etc,
- The Complete Guide on how to invest which is pretty self-explanatory
- How to do some gambling with Bitcoin and (hopefully) win big!
If you can’t be bothered reading the e-Book and you have some sort of I.D like a driver's license or credit card then go visit an exchange like Indacoin (affiliate, but I personally love them), all you need is your CC and bam you got some Bitcoins.
You can also visit places like:
On a tight budget?
Well then here's a full guide on how to get some free bitcoins to start your investing career
Now if you read all this and made it up to here firstly, high five you just learnt some cool stuff and you should get on with your crypto investing journey,
And secondly, I hate nagging or being a spam, but if you have time on your side then why not pick up the free e-Book that I mentioned earlier, simply put it’ll help you out a tonne!
So how was this post? Did you learn anything new? Disagree with one of my points? Need some help investing or just plainly loved this post, well I’d love to hear everything, hit me up in the comments and I’ll fire back! (But not literally :smile:)
Oh and these posts take a lot of time to write up, so hell yeah click that share button, it always makes me smile to see the share counter rise!
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