Hello Steemit Community!
Excited to join! I'm a growth hacker and data-based marketer out of Vancouver, Canada!
I got married a few months ago and after my wedding, I suddenly realized that I have SO MUCH fee time! So what did I do with it? I started learning about cryptocurrency investing! I've only been doing this for a few months so I'm still quite the rookie! But all the time that I used to spend on wedding planning, I now spend on investing in coins, so I'm kinda, sorta, maybe well-researched!
I've recently been helping friends and co-workers get started in crypto investing, so thought I'd share my big advice for all you rookie investors, just like me!
1. Don't fear the bubble
When I speak to friends about getting into crypto, the primary objection that I hear is fear of a bubble. Whether cryptocurrency is in a bubble or not is highly speculative, however the majority of investors would likely argue that some form of a bubble is forming. Based on all my research, it does seems that a bubble is likely en route. However, don't fear it - embrace it! Bubbles can take years to form and cryptocurrency is likely just at the beginning of this, which means that there is lots of opportunity for you to make money as prices of coins and tokens continue to rise! Invest an amount that you don't fear losing and transfer any earnings back to fiat currency on a weekly or monthly basis. This way your original investment will bring you consistent earnings without the fear of losing too much.
2. Do your research!
There are hundreds of altcoins out there! Most of them were created for the sole purpose of making money and speculative investing. This means that the only use for these coins is buying and selling them on exchanges. If tomorrow all crypto exchanges cease to exist, these coins would disappear as well. These coins will not make it after the bubble bursts or even before that, so stay away from them . However, there are lots of great coins out there that provide value and have a use to them other than being a tradeable on an exchange. This means that if all exchanges disappear tomorrow, these coins will continue to be used. These are the coins who's price will continue to rise even if (or when) the bubble bursts and they make for great long-term investments.
3. Follow the leaders!
Financial markets can be full of self-fulfilling prophecies. For example, Warren Buffet (big-time traditional investor) believes that the value of Amazon's stock will increase in price. He invests in Amazon and tells all his followers to invest as well because he believes that the value of Amazon's stock will increase. All of his followers invest in Amazon, which drives up the price of Amazon's stock, making it self-fulfilling prophecy. The cryptocurrency market is even smaller than the traditional capital market and a lot more susceptible to influence. A lot of big cryptocurrency investors use this to their advantage and it's a great thing for small investors as well. Start following a few investors that like to make really big bets and are also very influential. If they make a big investment in a specific coin, they will likely begin to promote it very heavily as it's in their best interest for that altcoin's price going up. Invest in that coin and let the influential guys do all the work for you!
Hope you found this helpful! Please share your thoughts in the comments section as I'd love to learn from you all!
Dina