How To Invest in Cryptocurrencies Beginners Guide
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Cryptocurrencies have pretty much been a topic of intense discussion over the last few years. How many times have we heard stories of people becoming overnight millionaires and, at the same time, stories of people who lost hundreds of thousands of dollars hoping to make a quick buck?
So, if you are looking to invest in crypto in a safe manner, then this guide is for you. The purpose of this guide is to help educate investors as much as possible and to reduce speculation in the market.
If you want to learn more about cryptocurrencies themselves, then you can check out our beginner courses on cryptocurrencies.
Disclaimer before continuing: We are not a financial institution: All we are proving is educational material: Do not take this information as professional investment advice.
How To Invest in Cryptocurrencies 101
The very fact that you are reading this guide shows us that you are interested in investing in cryptocurrencies. These immutable and exchangeable cryptographic token promises to become hard and non-manipulatable money for the whole world. Their advocates see a future in which Bitcoin or other cryptocurrencies will substitute Euro, Dollar and so on and create the first free and hard world currency.
Besides what was already said, there are three major good reasons to invest in cryptocurrencies.
First, because you want to hedge your net-worth against the fall of the Dollar imperium, which is assumed by many people to inevitably happen at some time. Second, because you support the social vision behind cryptocurrencies – that of free and hard money for the whole world. Third, because you understand and like the technology behind it.
However, there are also very bad reasons to invest in cryptocurrencies. Many people fall victim to the hype surrounding every cryptocurrency-bubble. There is always somebody captured by FOMO (fear of missing out), buying massively in at the peak of a bubble, just in the hope to make quick money, while not understanding cryptocurrencies at all. That’s a bad reason. Don’t do this. Learn before you invest.
Early-stage investors in Bitcoin and Ethereum made millions of dollars in pure profits. If you see the following graph then you will know exactly what we mean.

In a one-year time span from December 2016 to December 2017, Bitcoin went from $750 to a staggering $10,000! This means that anybody who invested $10,000 in December 2016, would get back a mind-numbing $133,333 in exactly 365 days. In fact, the total market cap of cryptocurrencies went all the way up to an astounding $500 billion by the end of 2017.
Stories like that flooded the internet and more and more people joined the crypto hype to get a slice of that crypto pie. However, as more and more speculators flooded the market, the inevitable happened.
The market took a huge dip.
With Bitcoin taking a dip, all the other currencies took a dip, and lots of people lost their entire life savings.
In this guide, we are going to show you how you can educate yourself to ma
Be Ok With Taking Calculated Risks
Because the volatility of cryptocurrencies grossly exceeds that of any other investment class, they are not a normal investment. Plus, there is always the risk that your country may outlaw cryptocurrency trading and exchange. If that’s the case, then you should make your peace with not liquidating your crypto assets.So, the important takeaway here is to only risk as much money as you can afford. Like Wence Casares, CEO of Xapo sums it up in an AMA on bitcoin.com .