Cryptocurrency is the future
This is the second posting for 2018, in which we provide advice on some house cleaning tips for the new year – Cryptocurrency. We hope you enjoyed last week’s article. This week, we’re talking about MONEY aka “cryptocurrency” aka “digital currency”. First, let’s start with…
Y’all think it’s bougie, I’m like, it’s fine
But I’m tryin’ to give you a million dollars worth of game for $9.99
CRYPTOCURRENCY is the name of the game. If you’re able to get in on this wave, GO FOR IT!! Yes, it is the future. There will be some naysayers (HATERS), but remember…they said the same thing about Uber, Airbnb, etc. The traditional industries are being disrupted at record pace and they’re being backed by influential people inside and outside the tech community.
Personal story
For me, I was educating and watching this trend in June 2017 and had a conversation with a friend in August 2017. Around that time, it was fluctuating between $2,000 and $3,000.
I coulda bought a place in Dumbo before it was Dumbo
For like 2 million
That same building today is worth 25 million
Guess how I’m feelin’? Dumbo – Jay Z, The Story of OJ
This is how I feel about Bitcoin 🤪
I coulda bought many shares of BTC before it was BTC
For like $2,000
That same coin today is worth more than $16,000
Guess how I’m feelin? CRAZY – Me, The Story of Bitcoin
I’ve been down this road before, investing in stocks and I’ve bounced back, so I’m not worried. But, don’t let this happen to you, as many other cryptocurrencies are on the market today and ripe for blowing up. So here goes….
How do I start with cryptocurrency?
The biggest challenge I find with Bitcoin and other cryptocurrencies is that there is so much information on the web. Quite frankly, a bit too much to digest in a short timeframe. For that reason alone, we’ve attempted to do the work for you. The intent of this post is to provide you with a quick “Get Going” article to help get you started.
Now, there’s the question of when and what to buy. Putting everything you want to invest in one coin at one time isn’t a great strategy since then you’re relying on that one coin to do well from that one point in time. It’s very, very risky.
What makes more sense if you want to get started investing in cryptocurrencies is to create your own index fund of coins and dollar cost average your investments over time.
Where can I buy/exchange cryptocurrency?
Unlike the stock market, there is no “one-stop-shop” to purchase digital currency, which is quite frustrating. Coinbase is a platform you can use to purchase BitCoin, BitCoin Cash, Ethereum and Litcoin. However, you cannot purchase other coins using Coinbase and there are more than 1000 other coins out there. So, you can go over to other platforms, such as Bittrex, Poloniex, or Binance.
But remember, this is just the beginning. You were not around when the stock market started, but can you imagine how much confusion, frustration, etc. people felt until things stabilized. Now, once they stabilized the people who got in early were already stable because they were comfortable with RISK.
(NOTE: As of right now, registering for these exchanges is taking a lot of time for some users because everyone is trying to get in on this wave.)
To account for the risk, use dollar cost averaging, where instead of putting all out there at once, you do it over time. For example, you can setup your money to be deposited on a daily or weekly basis. This allows you to get the most out of your long-term investments. In the stock market, people tend to use dollar cost averaging by purchasing stocks monthly. However, cryptocurrencies are moving so fast, you could buy them in weekly or daily transactions.
With all that being said, here are the steps to buying them at regular intervals.
This is what I did.
First. Open an account with Coinbase. You can use other exchanges for this too, but Coinbase is the one I’m most familiar with.
Second: Set up a purchase for Bitcoin, Ethereum, and Litecoin, at whatever amount you want to invest, to recur weekly.
I’ve been doing a ratio of 2:2:1 of Bitcoin : Ethereum : Litecoin and it’s been working out well.
Third: Let it run and don’t touch it! As long as you can ride out the ups and downs, if the prices of these coins increase over time, you’ll be exposed to a lot of the upside without having to take the risk of trying to perfectly time the market.
Check back on Monday for the entry on, “Using Bitcoin and Ethereum to buy other cryptos”
Lastly, remember that I’m not an investment advisor and this is not investment advice. The information and content provided in this post are for informational and/or educational purposes only.